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HomeMy Public PortalAboutPierce Equipment-Fire DepartmentLEASE -PURCHASE AGREEMENT 196972000 ("Tunn-in"Lease for Pierce Equipment) Dated asmfMay 23,2816 Lessee Name: City ofCrestview Lessee Street Address: 1S8NWilson Street, Crestview, FL3253G 1. EQUIPMENT LEASE. Subject to the terms of this Lease, Lessee leases the Equipment from PNC Equipment Finance, LLC ("Lessor"). This Lease's term ("Lease Term") begins onthe date Lessor designates below (the "Acceptance Date") and, un|mao terminated early as expressly provided henain, continues until Lessee fully pays and performs all ofits obligations hereunder. 2. CERTAIN DEFINITIONS. All hanno defined herein apply equally to both the singular and plural form of such terms. (a) "Equipment" means the property described in the Schedule, together with allattaohmentu. additiuno, scceaoiono, hnpnovemente, replacements and substitutions thereto. (b) "Lien" means any security interest, lien, mortgage, encumbrance, attachment levy, other judicial process or claim of any nature whatsoever by orofany person. (o) "Lease" means this Lease'PunchoseAgnmememt. together with the Schedule and the exhibitn, schedules and addenda attached hereto and thereto and modem pad hereof. (d) "Schedule" means the Schedule A-1 executed by Lessee and Lessor that is attached to this Lease. 3. RENT PAYMENTS. Lessee will pay to Lessor the rent payments as set forth in the Schedule ("Rent Payments"). Part of each Rent Payment represents the payment of interest as mot forth in the Schedule. Lessee's obligation to pay Rant Paymenta, including interest thenain, accrues an of the Accrual Oaba stated in the Schedule. Rent Payments will be paid in U.S. dollars, without notice or demand, at Lessor's office (or such other place as Lessor designates from time hotime inwriting). EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 5.THE OBLIGATION TO PAY RENT PAYMENTS IS ABSOLUTE AND UNCONDITIONAL |NALL EVENTS AND IS NOT SUBJECT TO ANY SETOPF, DEFENSE, COUNTERCLAIM, ABATEMENT OR RECOWPN&ENT FOR ANY REASON. If Lessor naoeivao any payment from Lessee after the due data` Lessee nheU pay Lessor on demand as o |ota charge 596 of such overdue mnnourd. |imbad, however, to the maximum legal amount. 4. ACCEPTANCE; FUNDING CONDITIONS. (a) As between Lessee and Lessor, Lessee acirees that(i) Lessee has received and inspected all GouYRmnmnt: f1ill all Equipment is in qmod vvmrkinm order and oornp||eo with all purchase orders, contracts and specifications; (|||) Lmoome accepts all Equipment for purposes ofthis Lease "as -is. -where -is"; and flv) Lessee waives any riqht to revoke its acceptance. (b) Lessor has no obligation to pay the Purchase Price of the Equipment as stated in the Schedule (the "Purchase Price") un|aoa all reasonable conditions established by Lessor ("Funding Conditions") have been uadofied, including, without limitation, the following: (i) Lessee has signed and delivered the Schedule; (ii) no Event of Default shall have occurred and be continuing; (iii) no material adverse change shall have occurred in the Internal Revenue Code of 1986, as amended, and the related regulations and rulings (collectively, the "Code"); (iv) no material adverse change shall have occurred in the Lessee's financial condition or any supplier ofthe Equipment; (v) all representations nfLessee herein remain tnue, accurate and complete; and (vi) Lessor has received all of the ho||ovvinq douumenta, which shall be reasonably matiohaotory, in form and substance, to Lessor: (A) evidence of required insurance coverage; (B) an opinion of Lessee's counsel; (C) reasonably detailed invoices for the Equipment; ([}) Uniform Commercial Code (UCC) financing statements; (E) copies of naao|uhuno by Lessee's governing body duly authorizing this Lease and incumbency certificates for the person(m)who have signed this Lease; (F) such documents and certificates relating tothe tax-exempt interest payable hereunder (including, without limitation, IRS Form 8038G or8D3DGC) as Lessor may request; and (G) such other documents and information previously identified by Lessor orotherwise reasonably requested by Lessor. Lessee authorizes Pierce Manufacturing Inc. ("Manufacturer") or its dealer to complete the manufacturer's statement of origin (K0GD) and/or the certificate of title (COT) relating to the Equipment with Lessor's first sole Lien noted thereon and to deliver such MSO or COT directly to Lessor. S. TERMINATION FOR . (a) Lessee represents and warrants: that it has appropriated and budgeted the funds bmmake all Rent Payments hu the remainder pfthafiscn| year in which the Lease Tenn commences and that it currently intends to make Rant Payments for the full Lease Tenn if funds are appropriated for the Rent Payments in each succeeding fiscal year. Without contractually committing itself to do so, Lessee reasonably believes that moneys in an amount sufficient to make all Rent Payments can, and will lawfully be, appropriated therefor. Lessee directs the person incharge ofits budget requests toinclude the Rent Payments payable during each fiscal year in the budget request presented to Lessee's governing body for such fiscal year; provided, that Lessee's governing body retains authority to approve orreject any such budget request. All Rent Payments ahmU be payable out of the general funds of Lessee or out of other \aQoUy appropriated funds. The Lease will not be general obligation cfLessee and shall not constitute o pledge of either Lessee's full faith and credit or of Lessee's taxing power. (b) If Lessee's governing body fails to appropriate sufficient funds in any fiscal year for Rent Payments or other payments due hereunder and if other funds are not legally appropriated for such payments, a^Non+Appropriation Event" will bedeemed to have occurred. |faNon-Appropriation Event occurs, then: (|) Lessee shall give Lessor immediate notice ofsuch Non - Appropriation Event(ii)ontheRmdurnDota.LasseeuhoUreturntoLeuaoroUoftheEquipment.atLaaome'soo|e expense, in accordance with Section 19; and (c) the Lease shall terminate on the Return Date without penalty to Lasuem, provided, that Lessee ohmU pay all Rent Payments and other amounts payable under the Lease for which funds shall have been appnoprisded, provided further, that Lessee shall pay month -to -month rent cdthe note set forth in the Schedule for each month that Lessee fails to so return the Equipment. "Return Date" means the last day ofthe fiscal year for which appropriations were made for the Rent Payments due hereunder. 6. NO WARRANTY BY LESSOR. Lessor hereby assignstoLessee any assignable or suppliers warranties. Lessor authorizes Lessee toobtain the customary services furnished in connection with such warranties odLessee's sole expense. The Equipment |msold "AS IS"' LESSEE ACKNOWLEDGES THAT LESSOR DID NOT MANUFACTURE THE EQUIPMENT. LESSOR DOES NOT REPRESENT THE MANUFACTURER, OWNER, OR DEALER, AND LESSEE SELECTED THE EQUIPMENT BASED UPON LESSEE'S OWN JUDGMENT. LESSOR MAKES NO WARRANTIES, EXPRESS ORIMPLIED, INCLUDING WARRANTIES OFMERCHANTABILITY ORFITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE 0PkASTOTHE EQUIPMENT'S VALUE, DESIGN, CONDITION, USE, CAPACITY OR DURABILITY. LESSEE AGREES THAT REGARDLESS OFCAUSE, LESSOR IS NOT RESPONSIBLE FOR, AND LESSEE WILL NOT MAKE ANY CLAIM AGAINST LESSOR FOR, ANY DAMAGES, WHETHER CONSEQUENTIAL, D|RECT, SPECIAL OR INDIRECT INCURRED BY LESSEE IN CONNECTION WITH THE EQUIPMENT OR THIS LEASE -PURCHASE AGREEMENT. NEITHER THE MANUFACTURER, THE K]EALEFk, NOR ANY SALESPERSON, EMPLOYEE OPkAGENT OpTHE DEALER ORMANUFACTURER, ISLESSOR'S AGENT OR HAS ANY AUTHORITY TO SPEAK FOR LESSOR OR TO BIND LESSOR INANY WAY. Lessee agrees that (a) all Equipment will have been purchased in accordance with Lessee's specifications from manufacturer's and suppliers selected by Leouaa. (b) Lessor is not a manufacturer ordealer ofany Equipment and has no liability for the delivery or installation of any Equipment, (c) Lessor assumes noobligation with respect to any manufacturer's or supplier's product warranties or guaranties, (d) no manufacturer or supplier or any representative cfeither is an agent ofLessor, (o) any warranty, nepneuontation, o/agreement made by any manufacturer or supplier or any representative thereof shall not be binding upon Lessor, and (f) Lessor is paying the Purchase Price solely inconnection with this Lease. 7. TITLE; SECURITY INTEREST. (a) Title to the Equipment is vested in Lessee, subject to Lessoha security interest therein and all of Lessor's other rights hereunder including, vvbho/d |imbadon. Sections 5. 18. and 19. (b) As collateral security for the Secured Obligations, Lessee hereby grants to Lessor first priority security interest in the Equipment (now existing or hereafter acquired) and any and all proceeds thereof. Lessee agrees to execute and deliver to Lessor all necessary documents to evidence and perfect such security interemt, including, without |imitaUun. UCC financing statements. (o) "Secured Obligations" means Lessee's obligations to pay all Rent Payments and all other amounts due and payable hereunder and to perform and observe all covenonto, agreements and conditions (direct or indirect, obon|uta or contingent, due or to become due, orexisting orhereafter arising) ofLessee hereunder. O. MAINTENANCE; OPERATION. At its sole expenue. Lessee will: (a) repair and maintain the Equipment in good condition and working order in accordance with manufacturer's instructions; (b) supply and install all replacement parts orother devices when required to so maintain the Equipment or when required by applicable law or regulation, which parts or devices shall automatically become pad of the Equipment; (c) use all Equipment in a careful manner in the normal course of its operations and only for the purposes for which it was designed in accordance with the manufacturer's warranty requirements; and (d) comply with all laws and regulations relating to the Equipment. Lessor will not provide any maintenance or other service for any Equipment. Lessee will not make any alterations, additions or improvements (" to any Equipment without Lessor's prior written consent unless the Improvements may be readily removed without damage to the operation, value or utility of the Equipment, but any such Improvements not removed prior to this Lease's termination shall automatically become part of the Equipment. Q. LOCATION; INSPECTION. The Equipment will not beremoved from, cxif the Equipment isrolling stock, its permanent base will not bachanged from, the location specified in the Schedule (the ^Lpcation^)without Lessor's prior written consent which will not be unreasonably withheld. The Equipment is, and will remain, personal property and will not bedeemed bo be affixed or attached to real estate orany building. Upon n*moonob\e nctioe. Lessor may enter the Location or elsewhere during normal business hours to inspect the Equipment. 10. LIENS; SUBLEASES; TAXES. (a) Lessee will keep all Equipment free and clear cfall Liens except those Liens created hereunder. Lessee shall not sublet or lend any Equipment or permit it to be used by anyone other than Laooae or Lessee's employees. (b) Lessee will pay when due all Taxes which may now or hereafter be imposed upon any Equipment or its ownership, |aaning, nanta|, oo|o, pun:hoaa, possession or use, upon the Lease or upon any Rent Payments or any other payments due under the Lease. |fLessee fails topay such Taxes when duo. Lessor has the right, but not the obligation, to pay such Taxes. |fLessor pays any such Taxes. Lessee will, upon demand, immediately reimburse Lessor therefor. "Taxes" means present and future taxes, |aviea, dudaa, assessments prother governmental charges that are not based onthe net income of Lessor, whether they are assessed to or payable by Lessee or Lessor, including, without limitation (i) sales, use, excise, |icenoing, regiotration, bding, gross rmceipto, stamp and personal property toxao. and (ii) interest, penalties orfines onany nfthe foregoing. 11. RISK OFLOSS. (o)Lessee bears the entire risk cf loss, theft, damage ordestruction ofthe Equipment in whole or in part from any reason whatsoever ("Casualty Loss"). No Casualty Loss to any Equipment mhoU relieve Lessee from the obligation tomake any Rent Payments or to perform any other obligation hereunder. Proceeds of any insurance recovery will be applied to Lessee's obligations under this Section 11 - |foCasualty Loss occurs toany Equipment, Lessee shall immediately notify Lessor, and Lessee shall, unless otherwise directed by Lassnr, immediately repair the same. (b) |fLessor determines that any item of Equipment has suffered m Casualty Loss beyond repair (^LoutEquipment^)' Lessee shall aither(i) immediately replace the Lost Equipment with similar equipment in good repair, condition and working order free and clear of any Liens (except Lessor's Lieno), in which event such replacement equipment shall automatically be Equipment hereunder, and deliver toLessor true and complete copies of the invoice orbill nfsale covering the replacement equipment; or (ii) on the earlier ofGU days after the Casualty Loss or the next scheduled Rant Payment dato, pay Lessor (A) all amounts owed by Lessee hereunder, including the Rent Payments due on or accrued through such data plus (B) an amount equal to the Termination Value as of the Rant Payment data (or if the Casualty Loos payment is due between Rent Payment detes, then as of the Rent Payment data preceding the date that the Casualty Loss payment iwdue) set forth inthe Schedule. |fLessee ismaking such payment with respect to |eoo than all of the Equipment. Lessor will provide Leaoaa with the pro rota amount of the Rent Payment and Termination Value to be paid by Lessee with respect to the Lost Equipment and a revised Schedule. (o)Tnthe extent not prohibited by State |avv. Lessee shall bear the risk ofloss for, ohn|| pay dinact|y, and shall defend against any and all claims, |iabi|iUea, pnooeadings, actions, expenses (including reasonable ottornay'o hseo), damages or losses arising under or related toany Equipment, inc|uding, but not limited to, the possession, ownership, |eaoa, use or operation thereof. These obligations of Lessee ohs|| survive any expiration or termination of this Lease. Lessee shall not bear the risk of |oao of, nor pay for, any claims, |iabi|idee, pnoceadingo, ocUons, expenses (including ottnrney'sfaee). damages or losses which arise directly from events occurring after any Equipment has been returned by Lessee to Lessor in accordance with the terms hereof or which arise directly from Lessor's gross negligence orwillful misconduct. 12. INSURANCE. (a) Lessee at its sole expense shall stall times keep all Equipment insured against all Casualty Losses in an amount not less than the Equipment's Termination Value. Proceeds of insurance covering damage or loss of any Equipment shall be payable to Lessor as loss payee. (b)The Total Sale Price as set forth on the Schedule does not include the payment of any premium for any liability insurance coverage for bodily injury and/or property damage caused to others and no such insurance will be purchased by Lessor. (c)Lessee adits sole expense shall adall times carry public liability and third party property damage insurance in amounts reasonably satisfactory to Lessor protecting Lessee and Lessor from |iobi|biau for injuries to persons and damage to property of others relating in any way to any Equipment, Proceeds of such public liability or property insurance shall be payable first to Lessor as additional insured to the extent ofits liability and then to Lessee. All insurers will be reasonably satisfactory to Lessor. Lessee will promptly deliver to Lessor satisfactory evidence of required insurance coverage and all manawm|s and replacements thereof. Each insurance policy will require that the insurer give Lessor at least 30 days prior written notice of any such cancellation of such policy and will require that Lauoo/o interests remain insured regardless of any oct, error, miorapnaoantsdion, omission or neglect of Lessee. The insurance maintained by Lessee shall be primary without any right of contribution from insurance which may be maintained by Lessor. 13. PURCHASE OPTION. Upon 60 days prior written notice by Lessee to Lessor and if no Event of Default then mxisto. Lessee may purchase the Equipment on any Rant Payment due dote by paying to Lessor all Rent Payments than due (including accrued inberea, if any) plus the Termination Value amount set forth on the Schedule for such date. Upon satisfaction by Lessee of the foregoing purchase conditions, Lessor shall release its Lien on the Equipment and Lessee shall retain its title tn such Equipment "AS -IS, VVHERE-|8^, without representation or warranty by Lessor, express or implied, except for a representation that the Equipment is free and clear ofany Liens created byLessor. 14. REPRESENTATIONS AND WARRANTIES. Lomome represents and warrants that: (a) Lessee has full power, authority and legal right to execute and deliver the Lease and to perform its obligations under the Lease, and all such actions have been duly authorized by appropriate findings and actions of Lessee's governing body; (b) the Lease has been duly executed and delivered by Lessee and is o |agm|, valid and binding obligation of Leooaa, anh»rcaob|a in accordance with its terms; except to the extent limited by Florida and Fadano! laws affecting remedies and by bankruptuy, reorganization or other laws of general application relating to or affecting the enforcement ofcreditor's rights. (o) the Lease is authorized under, and the authorization, execution and delivery of the Lease complies vvith, all applicable hmdero|, state and local laws and regulations (ino|uding, but not limited to, all open meebng, public bidding and property acquisition laws) and all applicable judgments and court orders; (d) the execution, delivery and performance by Lessee of its obligations hereunder will not result in a bn000h or violation of, nor constitute e default under, any agreement, lease or other instrument bnwhich Lessee is a party or by which Lsoaea'o properties may be bound or affected; (s) there is no pendinQ, or to the best of Lessee's knowledge threatened, litigation of any nature which may have m material adverse effect on Lessee's ability to perform its obligations under the Lease; and (0 Le000a is a otote, or a political subdivision thereof, as referred to in Section 103 of the Code, and Lessee's obligation hereunder constitutes an enforceable obligation issued onbehalf ofostate oropolitical subdivision thereof. 16 TAX COVENANTS. Lessee covenants that it: (a)shall comply with all of the requirements of Sections 149(a) and 149Aa of the Code, as they may be amended from time to time, induding, but not limited to, executing and filing Internal Revenue Form 8038G or 8038GC. as the case may be, and any other information statements reasonably requested by Lessor; (b) shall not do (or cause to be done) any act which will cause, or by omission of any act allow, the Lease to be an "arbitrage bond" within the meaningofSection 148(a) of the Code or the Lease to be a "private activity bond" within the meaning of Section 141(a) of the Code; and (o) shall not do (or cause to be done) any act which will cause, orbyomission of any act allow, the interest portion of any Rent Payments to be or become includable in gross income for federal income taxation purposes under the Code. (d) If Lessor either (i) receives notice, in any form, from the IRS; or (ii) reasonably determines, based on an opinion of independent tax counsel selected by Lessor and approved by Lessee, which approval Lessee shall not unreasonably withhold, that Laoonr may not exclude the interest component of any Rent Payment under a Tax -Exempt Lease from federal gross income because Lessee breached a covenant contained herein, then Lessee oho|| pay to Leaoor, within thirty(3O) days after Lessor notifies Lessee of such determination, the amount which, with respect to Rent Payments previously paid and taking into account all pena|hao, finea, interest and additions totax (including all hadare|. state and local taxes imposed on the interest component of all Rent Payments under such Tax -Exempt Lease due through the date of such avant) that are imposed on Lessor as a result of the loss of the exclusion, will restore to Lessor the same after-tax yield on the transaction evidenced by such Tax -Exempt Lease (assuming tax at the highest marginal corporate tax rate) that it would have realized had the exclusion not been lost. Additionally, Lessee agrees that upon the occurrence cf such an event with respect booTax-Exempt Leaue, it ohoU pay additional rent to Lessor on each succeeding Rent Payment due date in such amount eswill maintain such after-tax yield tu Lessor. Lessor's determination of the amount necessary to maintain its after-tax yield as provided in this subsection (b) shall be conclusive (absent manifest error), Notwithstanding anything in aTax'Exempt Lease tuthe contrary, any payment that Lessee is required to make pursuant to this subsection (b) shall be made only from Legally Available Funds. 1& ASSIGNMENT. (a) Lessee shall not assign, bonoha[ p|edge, hypothecob*, nor grant any Lien on, nor cdhemvioo dispose of, this Lease orany Equipment orany interest in this Lease or Equipment. (b) Lessor may interest in this Lease and its Equipment, inwhole or in part, to any party at any time. Any such assignee or lien holder (an "Assignee") shall have all of the rights of Lessor under the applicable Lease. LESSEE WILL NOT ASSERT AGAINST ANY ASSIGNEE ANY CLAIMS, ABATEM8ENTS, SETOFFS, COUNTERCLA|MG, RECOUPMENTOPKANY OTHER SIMILAR DEFENSES WHICH LESSEE MAY HAVE AGAINST LESSOR. Unless Lessee agrees otherwise in writing, any such assignment transaction shall not release Lessor from any of Lessor's obligations under this Lease. An assignment or reassignment of any of Lessor's hghto, title or interest in the Lease orits Equipment will beenforceable against Lessee only after Lessee receives a written notice ofassignment which discloses the name and address of each such Assignee. For purposes of Section 149 of the Code. Lessee hereby appoints Lessor (or Lessor's designee) as the book entry and registration agent hokeep acomplete record nfany and all assignments ofthis Lease. Lessee agrees hmacknowledge inwriting any such assignments if so requested. (o) Subject tothe foregoing, this Lease inures to the benefit ofand is binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 17. EVENTS OF DEFAULT. 'Event of Default" means the occurrence of any one mmore of the : (a) Lessee fails bz make any Rent Payment (or any other payment) as it becomes due hereunder, and any such toi|una continues for 10 days after the due date thereof; (b) hesaaa fails to padbnn any of its obligations under Sections 10(a)` 12. or 16(a); (o) Lessee fails ho perform or observe any other condition o,agreement to be performed or observed by it hereunder and such failure ia not cured within 30 days after receipt ofLessor's written notice thereof; (d) any statement, representation or warranty made byLessee herein or in any writing delivered by Lessee in connection therewith proves at any time to have been false or misleading in any material respect as of the time when made; (e) Lessee applies for, or consents to, the appointment of a receiver, trustee, conservator or liquidator ofLessee orufall or substantial pad of he aaoets, or a petition for relief is filed by Lessee under any federal or state bankruptcy, insolvency or similar law, or a petition in a proceeding under any federal orstate bankruptcy, insolvency proimi|arlawisfiled against Lessee and is not dismissed within GOdayo thereafter; or Lessee shall be in default under any other |eono or under any other financing agreement executed atany time with Lessor. 18 REMEDIES. (a) If any Event ofDefault occurs, Lessor may, atits option, doone cvmore nfthe following: (i) require Lessee to pay all amounts then currently due hereunder and all remaining Rent Payments to become due hw,eunder, together with interest on such amounts at the ,ate of 12% per annunn (but not to exceed the highest rate permitted byapplicable law) from the date ofLessor's demand for such payment; (ii)require Lessee to promptly return all Equipment to Lessor in the manner set forth in Section 19. (iii) enter upon the pnamiomo where any Equipment is located and naponsaoa such Equipment without demand or notiva, without any court order orother process of law and without liability for any damage occasioned by such repossession; (iv) sell, lease orotherwise dispose of any Equipment, in whole or in part, in one ormore public or private transactions, and if Lessor so disposes of any Equipment. Lessor will retain the entire proceeds of such disposition free of any claims of Lessee, prov\ded, that if the net proceeds of the disposition of all the Equipment exceeds the applicable Termination Value plus the amounts payable by Lessee under this Section's clauses (a)(i) and (m)(vii), than such excess amount shall be remitted by Lessor to Lessee; (v) temminede, cancel orrescind this Lease as to any and all Equipment (vi) exercise any other hght, remedy or privilege which maybe available to Lessor under applicable law or, by appropriate court action at law or in equity. Lessor may enforce any of Lessee's obligations under the Lease; and/or (vii) require Lessee to pay all of Lessor's out-of-pocket costs and expenses incurred as a result (directly or indirectly) of the Event of Default and/or of Lessor's actions under this Section, including, without limitation, any attorney fees and expenses and any costs related to the repossession, uahakeeping, eionaga, rapair, reconditioning or disposition of any Equipment. (b) None of the above remedies in exo|um|ve, but each is cumulative and in addition to any other available remedy. Exercise of one or more remedies will not preclude its exercise of any other remedy. No delay or failure in exercising any remedy hereunder shall operate as a waiver thereof nor as an acquiescence in any default. Nosingle orpartial exercise of any remedy precludes any other exercise thereof or the exercise of any other remedy. 19. EQUIPMENT RETURN. |fLessor ioentitled toobtain possession o[any Equipment under the provisions ofthis Lease orifLessee kaobligated *tany time horeturn any Equipment, then (a)title bothe Equipment shall vest in Lessor immediately upon Lessor's notice thereof to Lessee, and (b) Lessee shall, at its sole expense and riok, immediately de'inota||, dioeooemNe, pock, onote, insure and return the Equipment to Lessor (a|| in accordance with applicable industry standards) at any location in the continental United States selected by Lessor. The Equipment shall be inthe same condition as when Lessee received it (except reasonable wear, tear and depreciation resulting from normal and proper use); shall be in good operating order and maintenance as required hereunder; shall be free and clear ofany Liens (except Lessor's Lien); and shall comply with all applicable laws and regulations. Until the Equipment is returned as required above. this Lease shall remain in full force including, without Umitation, the obligations to pay Rent Payments and to insure the Equipment. Lessee will execute and deliver to Lessor all documents reasonably requested by Lessor to evidence the transfer ofthe Equipment's legal and beneficial title to Lessor and bo evidence the termination of Lessee's interest inthe Equipment. 20. LAW GOVERNING. Each lease shall be governed bwthe laws mfthe state mfthe lessee (The 21. FINANCIAL INFORMATION; INDEMNITY; POWER OFATTORNEY. Aosoon aothey are available after their completion in each fiscal year ofLessee during the Lease Tenn. Lessee will deliver to Lessor upon Lessor's request the publicly available annual financial information of Lessee. To the extent permitted by Florida law, Lessee shall indamnifv, hold harmless and, if Lessor requests, defend Lessor and its mhan*hm|dem, affi|ioten, amnp|oyaeo, dealers and agents against all Claims directly or indirectly arising out oforconnected with (a) the mnanufauctuna, installation, use, |amse, possession ordelivery cfthe Equipment, (b) any defects in the Equiprnont, any wrongful act or omission of Laooae, or its employees and agents, or (c) any claims of alleged breach by Lessee of this Lease -Purchase Agreement or any related document. "Claims" means all |oasma. liabilities, damages, penalties, expenses (including attorney's fees and costs), claims, actions and suits, whether incontract, tort orotherwise. Lessee hereby appoints Lessor its true and lawful attorney -in -fact (with full power of substitution) to (i) prepare any instrument, certificate of title or financing statement covering the Equipment or cdhemWaa protecting Lessor's interest in the Equipment, to sign Lessee's name with the same force and effect as if signed by Lamoee, and to file same at the proper |ocotipn(o); and (ii) make claims for, receive payment of, and execute and endorse all documemdm, checks or drafts for |oom, thaft, damage or destruction to the Equipment under any insurance. 22. MISCELLANEOUS. (a) All section headings in the Lease are for reference only and do not define or limit the scope cf any provision hereof. (b)This Lease may beexecuted inseveral counterparts, each ofwhich shall bedeemed onoriginal, but all ofwhich shall badeemed one instrument. Only one counterpart ofthis Lease will bemarked ^Le000r'oOrigine|^ All other counterparts will bedeemed duplicates. Anassignment of, orsecurity interest in.this Lease may bmcreated through transfer and possession only cfthe counbsrpo�marked ^Lemno/o Original". (c) This Lease constitutes the entire agreement between the parties with respect tothe lease ofthe Equipment. This Lease shall not be modified or amended except with the written consent of Lessee and Lessor. Any provision of this Lease found to be prohibited by law shall be ineffective to the extent of such prohibition without invalidating the remainder of the Lease. (d) All notices to be given hereunder shall be in writing and either personally delivered or mailed by regular or certified mail or sent by an overnight courier delivery company to the other party at its address set forth herein or at such address as the party may provide in writing from time totime. Any such notices shall be deemed to have been received 5 days after mailing if sent by regular orcertified moi|, or on the next business day if sent byovernight courier, or on the day of delivery if delivered personally. 23. ANTI -MONEY LAUNOER|NG8NTERNAT|ONALTRADE LAW COMPLIANCE. Lessee represents and warrants to Lessor, as of the date of this Master Lease, the date of each advance of proceeds pursuant tothis Master Lease, the date of any renewal, extension or modification of this Master Lease or any Leaoe, and at all times until this K8motar Lease and each Lease has been terminated and all amounts thereunder have been indefeasibly paid in full, that (a) no Covered Entity (i) is e Sanctioned Person; (ii) has any ofits assets in o Sanctioned Country orin the ponuaouion, custody orcontrol of Sanctioned Person; cv(iii) does business in or with, or derives any of its operating income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any |am, regu|sdion, order ordirective enforced by any Compliance Authority; (b) the proceeds of any Lease will not be used to fund any operations in, finance any investments oractivities in, or, make any payments to, o Sanctioned Country orSanctioned Person in violation of any |aw, rogu|adon, order prdirective enforced by any Compliance Authority; (c) the funds used to repay any Lease are not derived from any unlawful activity; and (d) each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by. any |owm of the United Gbatea, including but not limited to anyAnh'Ternuhom Laws. Lessee covenants and agrees that it shall immediately notify Lessor inwriting upon the occurrence ofaReportable Compliance Event. As used herein: "Anti -Terrorism Laws" means any laws relating toterrorism, trade sanctions programs and embargoes. import/export licensing, money |aundehng, or bhbery, all as omendod, supplemented or nyp|ooed from time to time; "Compliance Authority" means each and all of the (n) U.S. Treasury Department/Office of Foreign /\oeeta Control, (b) U.G. Treasury Department/Financial Crimes Enforcement Network, (u) U.S. State Departnnent/Oirectorate of Defense Trade Controls, (d) U.S. Commerce Department/Bureau cfIndustry and Security, (a) U.S. |nbxma| Revenue Sonvica, U0 U.S. Jundoa Department, and (g) U.S. Securities and Exchange Commission; "Covered Entity" means Lessee, its affiliates and subsidiaries, all guarantors, pledgors of collateral, all owners of the foregoing, and all brokers or other agents of Lessee acting in any capacity in connection with this Master Lease or any Lease; "Reportable Compliance Event" means that any Covered Entity becomes oSanctioned Person, orioindicted, arnsigned, investigated or custodim||y dedoined, or receives an inquiry from na0u|abzry or law enforcement officia|s, in connection with any Anti -Terrorism Law orany predicate crime to any Anti -Terrorism Law, or self -discovers facts or circumstances implicating any aspect of its operations with the actual or possible violation of any Anti -Terrorism Law; "Sanctioned Country" means a country subject to a sanctions program maintained by any Compliance Authority; and "Sanctioned Penaon" means any individual peroon, group, regima, entity or thing listed o, otherwise recognized as a specially deoignated, pnohibited, sanctioned or debarred person or entity, orsubject to any limitations or prohibitions (including but not limited to the blocking of property or rejection of transactions), under any order ordirective of any Compliance Authority orotherwise subject to, or specially designated undar, any sanctions program maintained byany Compliance Authority. 24. USA PATRIOT ACT NOTICE. To help the government fight the funding of terrorism and money laundering activities. Federal law requires all financial institutions b)obtain, verify and record information that identifies each lessee that opens an account. What this means: when Lessee opens on account. Lessor will ash for the business name, business addnass, taxpayer identifying number and other information that will allow Lessor to identify Lessee, such as organizational documents. For some businesses and organizations, Lessor may also need toask for identifying information and documentation relating to certain individuals associated with the business or organization. 25. HEAVY-DUTY VEHICLE GREENHOUSE GAS EMISSION REDUCTION REGULATION. (a) If the equipment leased pursuant to the Lease is a tractor, the Lessee of this heavy-duty tractor understands that when using aheavy-duty tractor topull aS3-hzot orlonger box -type trailer pnohighway within California, the heavy-duty tractor must be compliant with sections 95300-95312. title 17. California Code of Roou|ationa, and that it is the responsibility of the Lessee to ensure this heavy-duty tractor is compliant. The regulations may require this heavy-duty tractor to have |ow+nz|ling -resistance tires that are U.S. Environmental Protection Agency (U.S. EPA) GmodVVoyVorified Technologies prior to current or future use in California, or may entirely prohibit use ofthis tractor in California if it is a model year 2011 o, later tractor and in not a U.S. EPA SmartWay Certified Tractor. (b) If the equipment leased pursuant to the Lease is o trailer, the Lessee of this box -type bailer understands that when using a heavy-duty tractor to pull a 53-foot or longer box -type trailer on a highway within California, the box -type trailer must be compliant with sections 95300'85312. title 17. California Code of Raqu|sdkzna, and that it is the responsibility. ofthe Lessee to ensure this bon -typo trailer in compliant. The regulations may require this trailer to have low -rolling -resistance tires and aerodynamic technologies that are U.S. Environmental Protection Agency SmnrtVVoy Verified Technologies prior to current or future use in (n) Notwithstanding anything in the Lease bothe contrary, the Lease does not prohibit the Lessee from modifying the trailer, at Leooao'o oost, to be compliant with the requirements of the California Heavy -Duty Vehicle Greenhouse Gas Emission Reduction Regulation. 26. IMPORTANT INFORMATION ABOUT PHONE CALLS. 8yproviding telephone numbar(o) hoLessor, now or at any later time, Lessee authorizes Lessor and its affiliates and designees to contact Lessee regarding baeoee account(s) with Lessor or its affiU*deo, whether such accounts are Laooae individual accounts or business accounts for which Lessee is acontuct. at such numbers using any meano, including but not limited to placing uaUo using an automated dialing system to ceU. Vo|P or other wireless phone number. or leaving prerecorded messages or sending text mensagoo, even if charges may be incurred for the oaUu or text messages. Lessee consents that any phone call with Lessor may be monitored or recorded by Lessor. OPTIONS ATEND OFLEASE TERM. /tthe end ofthe Lease Term, Lessee shall have the options set forth in the End-]f-LoaaeTerm Options Rider that isattached hnand made apart ofthe Lease ifand only ifsaid End - Of -Lease Term Options Rider has been executed by Leaoen. Lessor and Manufacturer orManufacturer's designee. PNC Equipment Finonno.LLC Le ("Lessor") By: . Title: Al Title City ofCrestview 1S8N.Wilson Street Crestview, FL3253G Sandra Thomas Vice President 155East Broad Street, B4-B23O'O5'7 Columbus, OH4521S FLORIDA LEASE -PURCHASE AGREEMENT ADDENDUM (Florida Local Government Lease) Dated AaOfMav23.2O1O Lease -Purchase Agreement Number 1BOS720UU Lessee: CUvofCrestview Reference is made to the above Lease -Purchase Agreement ("Lease") by and between PNC Equipment Finance, LLC ("Lessor") and the above lessee ("Lessee"). This Florida Lease -Purchase Agreement Addendum ("Addendum") amends and modifies the terms and conditions of the Lease and is hereby made a part of the Lease. Unless otherwise defined herein, capitalized terms defined in the Lease shall have the same meaning when used herein. NOW, THEREFORE, oapart of the valuable consideration toinduce the execution of Leases, Lessor and Lessee hereby agree to amend the Lease as follows: 1 All ofSection bofthe Lease is deleted and replaced with the following. �. Termination for Non-Apprmpriatimn.Lessee is obligated only tnpay such Rent Payments as may lawfully be made from funds of the Lessee actually budgeted and appropriated for that purpose consistingof legally revenues other than ad valorem taxes (the "Legally Available Funds"), Should Lessee fail to budget, appropriate or otherwise make available funds to pay Rent Payments on the date set forth in the Schedule for the forthcoming fiscal period of the Lessee (a "Non -Appropriation Event"), this Agreement shall be deemed terminated at the end of the then current fiscal period. Lessee agrees to deliver notice to Lessor of such termination at least 60 days prior to the end of the current fiscal period. In the event of a Non -Appropriation, Lessee agrees to voluntarily return the Equipment to Lessor and no further Rent Payments shall be due from the Lessee. Lessor shall use its best efforts to sell such Equipment in a commercially reasonable manner at public or private sale and apply the proceeds of such sale to pay the following items in the following order: (i) all costs and expenses of receiving possession of such Equipment and completing the sale thereof, (ii) the applicable Rent Payment amounts due hereunder for the fiscal period for which a Non -Appropriation Event has occurred, and (iii) the balance of any Rent Payments owed by Lessee hereunder for which a Non - Appropriation Event has occurred during the fiscal period of Lessee then in effect. Any sale proceeds remaining after the requirements of clauses (i), (ii) and (iii) have been met shall be for the account of Lessee and shall be remitted to Lessee. In the event that Lessee fails or refuses to return the Equipment voluntarily as set forth above, Lessor acknowledges that no right in Lessor arises hereunder to involuntarily dispossess Lessee of possession of all or any item of Equipment. In lieu of such right, Lessor shall be entitled to receive from Lessee, and Lessee agrees to pay to Lessor, immediately, but only from Legally Available Funds, the Termination Value amount applicable to the immediately preceding Rent Payment due date, as set forth on the Schedule, plus the interest component of any Rent Payments accrued and unpaid as of the date of such payment. A Non -Appropriation Event shall not constitute a default hereunder." 2. Section 7ofthe Lease bdeleted and replaced with the following: 7TITLE; UCCFILINGS. 71 Upon Lessee's acceptance of any Equipment under a Lease, title to the Equipment shall vest in Lessee, subject to Lessor's rights under such Lease including, without limitation, Sections 5, 18and 1ghereof. 72Lessor shall not have a security interest in any of the Equipment under the Uniform Commercial of the State of Florida, but, in order to give notice to others of Lessor's rights under Sections 5, 18 and 19 hereof, Lessee agrees to execute and deliver to Lessor UCC financing statements relating to the Equipment and any amendments 3 All ofSection 18isdeleted and replaced with the following: ^18.REMEDIES. |fany Event cfDefault occurs, then Lessor may, uiits option, exercise any one or more nfthe following remedieo- �a Lessor may require Lessee topay, and Luaeeo agrees that it shall pay, (1)uU amounts then currently due under all Leases, (2) all remaining Rent Payments due under all Leases during the 5eoe| year in effect when the Event ofDefault occurs, (3) to the extent permitted by applicable |ew. the Termination Value due under all Leases when the Event ofDefault occurs after subtracting all amounts paid by Lessee under subclause (2) of this clause (a), and (4) interest on the foregoing amounts at the highest lawful rate from the date of Lessor's demand for such payment; "(b) upon Lessor's request, Lessee will promptly return all Equipment to Lessor in the manner set forth in Section 19, provided, that Lessor waives and releases any right that it may have at law or in equity to specific or compulsory performance of the foregoing agreement of Lessee to return the Equipment to Lessor; "(c) If Lessor terminates this Agreement and receives possession of the Equipment, Lessor shall use its best efforts to sell such Equipment in a commercially reasonable manner at public or private sale and apply the proceeds of such sale to pay the following items in the following order: (i) all costs and expenses of receiving possession of such Equipment and completing the sale thereof, (ii) the applicable Rent Payment amounts due hereunder for which an Event of Default has occurred and is then continuing, and (iii) the balance of any Rent Payments owed by Lessee hereunder for which an Event of Default has occurred and is then continuing during the fiscal period of Lessee then in effect. Any sale proceeds remaining after the requirements of clauses (i),(ii) and (iii) have been met shall be for the account of Lessee and shall be remitted to Lessee. If the proceeds of the sale of such Equipment is not sufficient to pay the balance of any Rent Payments owed by Lessee hereunder during the fiscal period of Lessee then in effect, Lessor may pursue such other remedies as are available at law or in equity to collect the balance of such Rent Payments from Lessee's legally available funds " "(d) subject to the provisions of the Leases that restrict Lessor's right to repossess or foreclose on the Equipment, Lessor may exercise any other right, remedy or privilege which may be available to Lessor under applicable law or Lessor may enforce any of Lessee's obligations under any Lease by appropriate court action at law or in equity; and/or "(e) Lessor may require Lessee to pay (and Lessee agrees that it shall pay) all out-of- pocket costs and expenses incurred by Lessor as a result (directly or indirectly) of the Event of Default and/or of Lessor's actions under this section, including, without limitation, any attorney fees and expenses and any costs related to the repossession, safekeeping, storage, repair, reconditioning or disposition of any Equipment. "None of the above remedies is exclusive, but each is cumulative and in addition to any other remedy available to Lessor. Lessor's exercise of one or more remedies shall not preclude its exercise of any other remedy. No delay or failure on the part of Lessor to exercise any remedy under any Lease shall operate as a waiver thereof, nor as an acquiescence in any default, nor shall any single or partial exercise of any remedy preclude any other exercise thereof or the exercise of any other remedy." 4. Lessor acknowledges that (a) no Lease will be a general obligation of Lessee, (b) no Lease will be payable from a pledge of ad valorem taxes, and (c) no Lease shall constitute a pledge of either the full faith and credit of Lessee or the taxing power of Lessee. 6. Except as expressly amended by this Addendum and other modifications signed by Lessor, the Lease remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first referenced above. City of Crestview (Les By: 44 G.Ltc Title: AA, n "IFz aim Ett,,t_bt44., (NA Title. teic— PNC Equipment Finance, LLC (Lessor) By: Sandra Thomas Vice President SCHEDULE A-1 TO LEASE -PURCHASE AGREEMENT This Schedule A-1, (the "Schedule") is attached and made a part of the Lease -Purchase Agreement No. 196972000, together with all exhibits, schedules, addenda, and other attachments thereto, executed by Lessee and Lessor (the "Lease"). Unless otherwise defined herein, capitalized terms will have the same meaning ascribed to them in the Lease. To the extent that there is any conflict between the terms of the Lease and this Schedule, the terms of this Schedule shall control. 1. EQUIPMENT DESCRIPTION. As used in the Lease, "Equipment" means all of the property described in this Schedule and all attachments, additions, accessions, parts, repairs, improvements, replacements and substitutions thereto. 2. ESSENTIAL USE; CURRENT INTENT OF LESSEE. Lessee represents that the use of the Equipment is essential to Lessee's proper, efficient and economic functioning or to the services that Lessee provides to its citizens and the Equipment will be used by Lessee only for the purpose of performing its governmental or proprietary functions consistent with the permissible scope of its authority. Lessee currently intends for the full Lease Term: to use the Equipment; to continue this Lease; and (if applicable) to make Rent Payments if funds are appropriated in each fiscal year by its governing body. 3. BANK QUALIFIED. LESSEE CERTIFIES THAT IT HAS DESIGNATED THIS LEASE -PURCHASE AGREEMENT AS A QUALIFIED TAX-EXEMPT OBLIGATION IN ACCORDANCE WITH SECTION 265(b)(3) OF THE CODE, THAT IT HAS NOT DESIGNATED MORE THAN $10,000,000 OF ITS OBLIGATIONS AS QUALIFIED TAX-EXEMPT OBLIGATIONS IN ACCORDANCE WITH SUCH SECTION FOR THE CURRENT CALENDAR YEAR AND THAT IT REASONABLY ANTICIPATES THAT THE TOTAL AMOUNT OF TAX- EXEMPT OBLIGATIONS TO BE ISSUED BY LESSEE DURING THE CURRENT CALENDAR YEAR WILL NOT EXCEED $10,000,000. 4. EQUIPMENT LOCATION & DESCRIPTION. City of Crestview 198 N. Wilson Street Crestview, FL 32536 Okaloosa County 2016 Pierce Saber Pumper Vin# 2016 Pierce Saber Pumper VIN # 5. LEASE PAYMENT SCHEDULE. (a) Accrual Date: May 23, 2016 (b) Amount Financed: Equipment Purchase Price $937,884.48 ii. purchase Price Deductions $0.00 Prepay Discounts $35,004.22 Trade In $0.00 Total Amount Financed (Cash Sale Price minus $902,88026 Purchase Price Deductions) (c) Payment Schedule: Accrual Date: &1ov22. 2016 Rend Payment Rent Payment Rent Payment Interest Number Date Amount Portion Principal Portion Termination Value 1 5/23/2017 108.589.95 25.372.00 84.217.95 843.22218 2 5/23/2018 108.589.95 23.006.37 86.584.58 754.040.06 3 5/23/3019 109.589.95 20.572.25 89.017.70 662.351.83 4 5/23/2020 109.589.95 18.070.74 91.51921 568.087.04 S 5/23/2021 109.589.86 15.498.85 94.081.00 471.173.31 G 5/23/2022 109.589.95 13.854.88 86.735.07 371.536.19 7 5/23/2023 109.589.85 10.136.51 99.453.44 269.099.15 8 6/23/2023 281`884.85 623.54 261.261.31 1.00 City of Crestview (") By: A �� W �q � v PNC Equipment Finance, LLC ("Lessor") Sandra Thomas VirA President INSURANCE COVERAGE DISCLOSURE PNC Equipment Finance, LLC, LESSOR City of Crestview, LESSEE RE: INSURANCE COVERAGE REQUIREMENTS 1. In accordance with the Lease -Purchase Agreement, Lessee certifies that it has instructed the insurance agent named below (please fill in name, address, and telephone number): _ ie k ,e,-, r e c / ( -5- c' / IL/ /) C -1 1 3 to issue: a. All Risk Physical Damage Insurance on the leased Equipment evidenced by a Certificate of Insurance and Long Form Loss Payable Clause naming PNC Equipment Finance, LLC and/or its assigns as Loss Payee. Coverage Required: Termination Value Specified b. Public Liability Insurance evidenced by a Certificate of Insurance naming PNC Equipment Finance, LLC and/or its assigns as an Additional Insured. Minimum Coverage Required: $1,000,000.00 per person $2,000,000.00 aggregate bodily injury liability $1,000,000.00 property damage liability Proof of insurance coverage will be provided to PNC Equipment Finance, LLC, 155 East Broad Street, B4-B230-05-7, Columbus, OH 43215; prior to the time that the property is delivered to Lessee. OR 2. Pursuant to the Lease -Purchase Agreement, Lessee represents and warrants, in addition to other matters under the Lease -Purchase Agreement, that it is lawfully self -insured for: (check to indicate coverage) a. All risk, physical damage in the amount specified in 1(a) above. b. Public liability for not less than the amounts specified in 1(b) above. Lessee has attached a signed letter describing self-insurance. LESSEE: City of Crestview A' ice- 7 Title: C..// RESOLUTION 16-13 A RESOLUTION OF THE CITY OF CRESTVIEW, FLORIDA, AUTHORIZING THE FINANCING OF FIRE EQUIPMENT IN THE AMOUNT OF $902,880.26, PROVIDING FOR THE PAYMENT OF SUCH FINANCING, MAKING CERTAIN COVENANTS AND AGEEMENTS IN CONNECTION THEREWITH, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Crestview is a political subdivision of the State in which the City of Crestview ( "The City") is located (the "State") and is duly organized and existing pursuant to the Constitution and laws of the State. WHEREAS, pursuant to applicable law, the City Council of the City of Crestview is authorized to acquire and dispose of real and personal property, including, without limitation, rights and interest in property, leases and easements necessary to the functions or operations of the City of Crestview. WHEREAS, the City Council hereby finds and determines that the execution of one or more Lease - Purchase Agreements ("Leases") in the principal amount not exceeding the amount stated above for the purpose of acquiring the property ("Equipment") to be described in the Leases is appropriate and necessary to the functions and operations of the City of Crestview. WHEREAS, PNC Equipment Finance, LLC ("Lessor") shall act as Lessor under said Leases. NOW, THEREFORE, Be It Resolved by the City Council of the City of Crestview, Florida: Section I . The Mayor and the City Clerk,("the Agents"), acting on behalf of the City, are hereby authorized to negotiate, enter into, execute, and deliver one or more Leases in substantially the form set forth in the document presently before the City Council, which document is available for public inspection at the office of the City Clerk. The Agents, acting on behalf of the City are hereby authorized to negotiate, enter into, execute, and deliver such other documents relating to the Lease as the Agents deem necessary and appropriate. All other related contracts and agreements necessary and incidental to the Leases are hereby authorized. Section 2. The aggregate original principal amount of the Leases shall not exceed the amount stated above and shall bear interest as set forth in the Leases and the Leases shall contain such options to purchase by the City as set forth therein. Section 3. The City's obligations under the Leases shall be subject to annual appropriation or renewal by the City Council as set forth in each Lease and the City's obligations under the Leases shall not constitute general obligations of the City or indebtedness under the Constitution or laws of the State. Section 4. As to each Lease, the City of Crestview reasonably anticipates to issue not more than $10,000,000 of tax-exempt obligations (other than "private activity bonds" which are not "qualified 501(c) (3) bonds") during the calendar year in which each such Lease is issued and hereby designates each Lease as a qualified tax-exempt obligation for purposes of Section 265(b) of the Internal Revenue Code of 1986, as amended. Section 5. This resolution shall take effect immediately upon its adoption and approval. Q ADOPTED AND APPROVED on this .6A OM gae CElriabe Roy, City Clerk Joe Bloc i., Council President. The undersigned Clerk of the above -named City of Crestview hereby certifies and attests that the undersigned has access to the official records of the City Council of the City of Crestview, that the foregoing resolution was duly adopted by said City Council of the City of Crestview at a meeting of said City Council and that such resolution has not been amended or altered and Is In full force and effect on the date stated below. LESSEE: City of Crestview Elizabeth Roy, City Clerk , P rzAhe'l-k in a) y Print Name: - Official Title 0 17\-/ ai auk. [SEAL] CERTIFICATE OF INCUMBENCY Lessee: City of Crestview Lease Schedule No.: 196972000 Dated: Mav 23, 2016 I, the undersigned Secretary/Clerk identified below, do hereby certify that I am the duly elected or appointed and acting Secretary/Clerk of the above Lessee (the "Lessee"), a political subdivision duly organized and existing under the laws of the State where Lessee is located, that I have the title stated below, and that, as of the date hereof, the individuals named below are the duly elected or appointed officers of the Lessee holding the offices set forth opposite their respective names. [NOTE: Use same titles as Authorized Representatives stated in Resolutions.] Name Title Cl r 2-16r/1, ti if Name Title � Signature ( ealL Signature �h IN WITNESS WHEREOF, I have duly executed this certificate and affixed the seal of such Lessee as of the date set forth below. a-47 Signature of Secretary/Clerk of Lessee Print Name: Official Title: at13.1 l_IGi,IL Date: -5 )431 tip [SEAL] THREE PARTY AGREEMENT ^Laaaae^means City ofCrestview ^Loasa^means Lease -Purchase Agreement No. 19G9720OO.dated May 23.2O1S. together with its Schedule A-1. Reference is made to the Lease -Purchase Agreement described above between PNC Equipment Finance, LLC ("Lessor") and the Lessee identified above which relates to Equipment described in the Schadu|eA-1. attached therein (^Equipmen[)bobe supplied by Pierce Manufacturing Inc. (^Supp|iar"). For good and valuable consideration, receipt ofwhich is hereby acknowledged, Lessee, Lessor and Supplier hereby agree mafollows: 1. Notwithstanding anything hothe contrary hn the Lease, Lessee hereby notifies Lessor that the Equipment has not yet been delivered to Lessee and the Equipment has not yet been accepted by Lessee for purposes of the Lease. Lessee agrees to execute and deliver to Lessor a Delivery and Acceptance Certificate in the form attached hereto as Exhibit A upon the circumstances set forth in said Certificate. 2. All parties hereto agree that the Purchase Price ofthe Equipment shall beaaset forth below if said Purchase Price is paid on or before the Advance Payment Date set forth below: Purchase Price: Vendor Discounts: Advance Payment Date: $937,884.48 $35,00422 May %3.201G 3.Upon execution of the Lease and delivery of all documents relating thereto required by Lemsor, Lessee agrees that it shall pay the Lessee Down Payment stated below and Lessor agrees that itshall pay the balance ofthe Purchase Price (the "Amount Finmncad')stated below. Laoaaa agnaan that the Lease Term and Lessee's obligation to pay Rent Payments shall commence on the dada set forth in the Lease notwithstanding the delivery of the Equipment at o later date. Lessee Down Payment: Trade In: Amount Financed: $0.00 $0.00 1. (a) Supplier anticipates that it shall deliver the Equipment to Lessee by the Anticipated Delivery Date set forth below. Anticipated Delivery Date: February 23.2U17 (b)Supplier hereby agrees that kshall deliver the Equipment VoLessee nolater than the Outside Delivery Date set forth below and that such Equipment shall comply with all specifications and requirements of Lessee and with the terms and conditions of any purchase order/purchase agreement relating thereto. Outside Delivery Date: /\Ph|23. 2017 S. If for any reason whatsoever Supplier fails tocomply with its agreements set forth in subparagraph 4(b) of this Agreement bythe Outside Delivery Date, for any piece of Equipment (the "Delayed Equipment"), and the Lessee has not ognaod to revise the Outside Delivery Date with respect to such Delayed Equipment. then Supplier hereby agrees as follows only for the (a) On the first business day after the Outside Delivery Date, Supplier shall pay to Lessee the Lessee Down Payment plus interest sdthe Prime Rate plus one percent (1%)per onnum from the Advance Payment Date buthe date ofsuch payment; (b) On the first business day after the Outside Delivery Date, Supplier shall pay to Lessor the Amount Financed plus interest at the Prime Rate plus one percent (11 %) per annurn from the Advance Payment Date bothe date ofsuch payment; and (c)"Prime Rate" means the prime rate mfinterest aspublished from time totime inthe Wall Street Journal. |fthere ismore than one piece cfEquipment subject hothe Lease, and some cf the Equipment is delivered in ouuondanoa with subparagraph 4(b) of this Agraament, the payments owed pursuant to the Lease shall be modified to reflect only the obligations due on the Equipment that was delivered pursuant to aubpanagnaph4(b) of this Agreement. The new payment obligation will be determined based onthe amount financed for the Equipment delivered tothe Lessee, and based unthe interest rate ineffect asofthe date ofLease commencement. G. |fSupplier makes the payments described in paragraph 5 above for the Delayed Equipment under the circumstances set forth above and if Lessee has otherwise paid and performed its obligations under the Lease Schedule aaofsuch payment date for the Delayed Equipment, then Lessee and Lessor agree that the Lease Schedule uho|| terminate as of the dote of such payments by Supplier aabothe Delayed Equipment only. Lessee's obligations shall continue unabated for the Equipment that was delivered pursuant to subparagraph 4(b) of this Agreement. 7. Supplier agrees that a Performance Bond will be issued which names the Supplier as Principal, the Lessee aaObligee and the Lessor aoAdditional Obligee. This Performance Bond will apply solely to the terms and conditions of the purchase order/purchase agreement, including na|otmd equipment specifications and warrantieo, as issued by the lessee and accepted by the Supplier. The "Contract Date" referred to in the Performance Bond shall be the date of the Three Party Agreement. Except as expressly set hudh herein. the Lease Schedule and the terms and conditions of the purchase order/purchase agreement for the equipment remain unchanged and infull force and effect, 8. Except as expressly set forth herein, the Lease and terms and conditions of the purchase order/purchase agreement for the Equipment remain unchanged and in full force and effect. IN WITNESS VVHEREOF, the duly authorized officers of the parties set forth below hereby execute and deliver this Agreement as of the date first written above. Citvo[Crestview PNCEquipment Finance, LLC _ ("Lessor") U Pierce N1enufeotuhnqInc. ("Supplier") By: 4J-._ — 44 x��~«�» �8 V - �.�L����e~m�� May, 25. 2016 4:29PM ank No.6721 P. 1 THREE PARTY AGREEMENT Dated as of May 23, 2016 `Lessee" means City of Crestview "Lease" means Lease -Purchase Agreement No. 196972000, dated May 23 2016, together with its Schedule A-1. Reference is made to the Lease -Purchase Agreement ("Lease' described above between PNC Equipment Finance, LLC ("Lessor") and the Lessee identified above which relates to Equipment described in the Schedule A-1, attached therein ("Equipment") to be supplied by Pierce Manufacturing inc. ("Supplier"). For good and valuable consideration, receipt of which is hereby acknowledged, Lessee, Lessor and Supplier hereby agree as follows: 1. Notwithstanding anything to the contrary in the Lease, Lessee hereby notifies Lessor that the Equipment has not yet been delivered to Lessee and the Equipment has not yet been accepted by Lessee for purposes of the Lease. Lessee agrees to execute and deliver to Lessor a Delivery and Acceptance Certificate in the form attached hereto as Exhibit A upon the circumstances set forth in said Certificate. 2_ All parties hereto agree that The Purchase Price of the Equipment shall be as set forth below if said Purchase Price is paid on or before the Advance Payment Date set forth below. Purchase Price: Vendor Discounts: Advance Payment Date: S937,884.48 $35, 004.22 May 23, 2016 3. Upon execution of the Lease and delivery of all documents relating thereto required by Lessor, Lessee agrees that it shall pay the Lessee Down Payment stated below and I es.or agrees that it shall pay the balance of the Purchase Price (the 'Amount Financed') stated below. Lessee agrees that the Lease Term and Lessee's obligation to pay Rent Payments shall commence on the date set forth in the Lease notwithstanding the delivery of the Equipment at a later date. I P=cee Down Payment Trade in: Amount Financed: $0.00 S0.00 $902,68026 1. (a) Supplier anticipates that ft shall deliver the Equipment to Lessee by the Anticipated Delivery Date set forth below. Anticipated Delivery Date: February 23, 2017 (b) Supplier hereby agrees that it shall deliver the Equipment to Lessee no later than the Outside Delivery Date set forth below and that such Equipment shall comply with all specifications and requirements of Lessee and with the terms and conditions of any purchase order/purchase agreement relating thereto. Outside Delivery Date: April 23.2017 5. If for any reason whatsoever Supplier fails to comply with its agreements set forth in subparagraph 4(b) of this Agreement by the Outside Delivery Date, for any place of Equipment (the `Delayed Equipment), and the Lessee has not agreed to revise the Outside Delivery Date with respect to such Delayed Equipment, then Supplier hereby agrees as follows only for the Delayed Equipment MaY. 25. 2016 4:29N lank 721 P. 2 (a) On the first business day after the Outside Deiivery Date, Supplier shall pay to Lessee the Lessee Down Payment plus interest at the Prime Rate. plus one pereen't (1%) per annum from the Advance Payment Date to the date of such payment (b).On the first business day after the Outside Delivery Date, Supplier shall pay to Lessor the Amount Financed plus interest. at the Prime Rate plus one percent (1%) par annum from the Advance Payment Date to the date of such paymert, and (c) 'Prime Rate' means the prime rate of interest as published from time to time in the Wall Street Journal. If there is more than one piece of Equipment subject to the Lease, and some of the Equipment is delivered in accordance with subparagraph 4(b) of this Agreement, the payments owed pursuant to the Lease shall be modified to reflect only the obligations due on the Equipment that was delivereo pursuant to subparagraph 4(b) of this Agreement The new payment obligation will be determined based on the amount financed for the Equipment delivered to the Lessee, and based on the interest rate in effect as of the dateof Lease commencement 6. If Supplier maKes the payments described in paragraph 5 above for the Delayed Equipment under the circumstances set forth above and if Lessee has otherwise paid and performed its obligations under the Lease Schedule as of such payment date for tfe.., Delayed EquipMerit, then Lessee and Lessor auree that the Lease Schedule shall terminate as of the date of such payments by Supplier as to the Delayed Equipment only. Lessee's obligations shall continue unabated for the Equipment that was delivered pursuant to subparagraph 4(b) of this Aare-emelt. 7. Supplier agrees that a Performance Bond will be issued which names the Supplier as Principal, the Lessee as Obligee and the Lessor as Additional Obligee. This Performance Bond will apply solely tc the terms and conditions of the pun These order/purchase agreement, including related equipment specifications, and warranties, as issued by the lessee and accepted by the Supplier. The 'Contract Date" referred to in the Performance Bond shall be the date of the Three Party Agreement Except as expressly set forth herein, the Lease Schedule and the terms and conditions of the purchase orderfpurchase agreement for the equipment remain unchanged and in full force and effect B. Except as expressly set forth herein, the Lease and terms and conditions of the purchase order/purchase agreement for the Equipment remain unchanged and in full forge and effect IN WITNESS WHEREOF, the dilly authorized officers of the parties set forth below hereby execute anci deliver this Agreement as of the date first written above. City of Crestview pNc Equipment Finance. LI_C CLessW) ('i_essor'') By: By: Sandra Thomas Vice -President Tftle Title: Pierce Manufacturing Inc. rSupplierl 1 BY: END -OF -LEASE TERM OPTIONS RIDER (Including "Turn In" Option) Lease -Purchase Agreement Number 1SGS72OUO Dated May 23`2O1G Lessee: City ofCrestview Balloon Rent Payment: $2G1.884.85(Payable atthe End ofthe Lease Term) Reference is made hothe above Lease -Purchase Agreement together with its Schedule A-1 and all related agreements ("Lease") between PNC Equipment Finance, LLC ("Lessor") and the above Lessee ("Lessee"). Unless otherwise defined herein, capitalized terms defined inthe Lease shall have the same meaning when used herein. Lessee and Lessor agree that this Rider ioattached to and made apart of the Lease. 1. THREE OPTIONS AT THE END OF THE LEASE TERM. At the end of the Lease Term, Lessee shall have the following three options (provided, that if Lessee fails twfurnish the advance written notice omrequired inparagraphs 3 or4below, then Lessee shall automatically be obligated topay in full the amounts set forth in paragraph 2 below): (i) Lessee may pay the Balloon Rant Payment and all other amounts set forth in paragraph 2 below; or(ii) subject tothe requirements of paragraph 3 below, Lessee may turn in the Equipment to Pierce Manufacturing Inc. ("Pierce") and Lessee shall agree to acquire a new fine truck supplied by Pierce or Pisnce'm designated dealer; or (iii) subject to the requirements ofparagraph 4below, Lessee may re -finance the Balloon Rent Payment. 2. BALLOON RENT PAYMENT. Unless Lessee has made an effective and timely election under paragraphs 3 or below, at the end of the Lease Tern. Lessee shall pay Lessor the Balloon Rent Payment together with all other unpaid Rent Payments and all other amounts then dun and payable by Lessee under the Lease and thereafter the Lease shall terminate in accordance with Section 13 of the baooe. "Balloon Rent Payment" means the amount set forth above as the Balloon Runt Payment. Lessee expressly agrees that if it fails to furnish the advance written notice as required in paragraphs 3 or 4 below, then Lessee shall automatically be obligated to pay to Lessor in full the amounts set forth in this paragraph 2. 3. "T0RN4N"OPTION WITH RETURN & MAINTENANCE REQUIREMENTS. Uand only if Lessee sends written notice to Lessor and Pierce that Lessee elects to exercise Lessee's rights under this paragraph 3 at least 18 months (but no more than 24 months) before the end of the Lease Term, then Lessee ognaaa for the benefit of both Lessor and Pierce that: (a) Loanae shall return the Equipment to Pierce in accordance with subparagraphs 3.1 and 3.2 below; (b) Lessee shall enter into a binding contract with Pierce (or Herce'o designated dealer) to acquire a Replacement Fire Truck in accordance with subparagraph 3.4 below; and (c) Lessee shall pay infull all amounts set forth in subparagraphs 3.1. 3.2 and 3.3 be|mm. If and only if (i) Lessee complies in full with all of the requirements of this paragraph 3, then Lessee shall not beobligated hupay Lessor the Balloon Rent Payment atthe end ofthe Lease Term. Lessee acknowledges that Pierce isthe intended third party beneficiary ofthe terms and conditions ofthis paragraph 3. and Lessee ognmea that P\enoa, directly in its own name and for its own benafit, may demand performance of and enforce any or all of Lessee's obligations as set forth in this paragraph 3 31 If Lessee has made an effective and timely election under the above b*nno of this paragraph 3` then atthe end of the Lease Term, Lessee shall return the Equipment to Pierce at a location selected by Pierce and Lessee egnaam for the benefit of both Lessor and Pierce that the Equipment shall comply with the following return and maintenance conditions on such date, all as determined by Pierce in its no|o discretion: (1) during the Lease Tenn. Lessee mhoU have properly maintained the Equipment, including, without limitation, all oil supplies, |ubricadon, brake and hydraulic Ouido, refrigeration Ouida, filters and pollution control devices of the Equipment; (2) all paint shall be in normal condition without excessive scrabchao, dents and chipo, all graphics must be professionally removed so that the exterior is in "trade-in" condidon, and any paint or body repair exceeding $500.00 shall be completed at Lessee's expense; (3) all electrical components shall be fully operational and shall pass the Pierce O8O113 electrical test (or its reasonable equivalent as determined by Pierce); (4) all pumps must pooa NFPA standard 1911 third -party certification (or its reasonable equivalent as determined by Pierce); (5) engines shall perform according tooriginal equipment manufacturer (OEM) specifications without excessive fluid leaks or blow by (as specified in the owner's manual or its equivalent); (6) the transmissions shall ohdt properly at rated loads and speeds and the mechanical drivw|inaa, differentials and final drives shall be in good condition without |aaho orexcessive vibration; (7) air conditioning units shall befully functional and cooling totheir rated capacity; (8) all environmental equipment shall befully functional; (9)tha engine and exhaust systems shall conform to all federal and state emissions standards; (10) replacement parts installed on the Equipment shall have been supplied byapproved OEM suppliers; (11) all brakes shall have atleast 6OY6 remaining vyofu| life; (13)each tire shall have at least 50Y6 remaining useful Ufe, shall be of original size and rated oopaniU/ and shall not have any material dannage, and any tire not mod\sfy\nQ said standards shall be replaced at Lessee's expense; (13) frame and structural members must bestructurally sound and without breaks orcracks; (14) glass shall not be cracked or broken; (15) batteries must hold their rated charge for 72 hours; (16) any cost to repair damage tothe chassis interior (including seat surfaces, haad|inero, door panels, dash and radio equipment mounting) exceeding $500.00 shall be paid by Lessee; (17) aerials must pass NFPA standard 1914third-party certification (or its reasonable equivalent as determined by Pierce); (18) any cost exceeding $1.000.00 in total to repair physical damage to hose bed anmaa. cross |ays, compartment interiors and tread plate surfaces shall be paid by Lessee; (19) all gauges and meters shall be fully operational; (20) Lessee shall pay all out-of-pocket costs incurred by Pierce orits agent botransport the Equipment to the location specified by Pierce and to insure the Equipment during such transportation; and (21) Lessee shall have maintained the Equipment in compliance with Section 8 of the Lease. 3.2 At the time of Lessee's return of the Equipment to Pierce, (a) Lessee aheJ| provide a historical record of all maintenance and repairs of the Equipment and periodic lubrication analyses done during the Lease Tamn in order to verify Lessee's compliance with the foregoing return and maintenance conditions, and (b) Lessee shall transfer good title to the Equipment free and clear ofall Liens to PNC Equipment Finance, LLC (or its designee) and deliver a Certificate of Title and such other documents as PNC Equipment Finance, LLC reasonably requests in connection with such transfer oftitle. Within 20 days of Lessee's return of the Equipmant. Pierce and/or its authorized agents will conduct a comprehensive road test. take lubrication testing samples from the engine, transmission and differential (and such lubricant tests must show nocontaminants orexcessive metal particles) and conduct other tests in order to determine vvhathe, the Equipment complies with the foregoing return and maintenance requirements and Lessee shall pay all costs and expenses necessary to make the Equipment comply with the foregoing return and maintenance requirements. All sums due under this paragraph 3 shall be paid to Pierce promptly upon Piarce'svvritten demand and if said mvmw are not so paid by Lessee within 10 days from the demand date. Lessee shall pay Pierce on demand as o late charge 596 of such overdue amount, |imited, hovvever, to the maximum legal amount. 3.3 If Lessee intends to exercise its rights under this paragraph 3 and if at the time of Lessee's return ufthe Equipment toPierce ad1heandoftheLeaonTennthemi|eogenaoondednntheEquipmenyw odometer is greater than the Maximum Mileage noted bo|ww. then Lessee ahsU pay to Pierce on excess usage fee amount equal to the Excess Usage Fee stated below for each mile in excess of the Maximum Mileage stated below: Maximum Mileage at the End of the Lease Term: 15,000 miles per truck per year Excess Usage Fee: $4.69 per mile per truck 3.4 No later than 18 months before the end of the Lease Term, Lessee shall have entered into a binding written contract with Pierce orPiercesdesignated dealer (which contract remains ineffect at all relevant times) to acquire m new fire truck (a "Replacement Fire Truck") from Pierce or Piarce'o designated dealer; provided, that (a) the terms and conditions nfsaid contract shall be reasonably satisfactory to Pierce or Pierce'o designated dealer, and (b) the acquisition coot of the Replacement Fire Truck shall not be less than the Balloon Rent Payment; and the acquisition shall be financed by PNC Equipment Finance, LLC. 3.5After careful consideration cf the Lessor's Cost ofthe Equipment, ofthe length oythe Lease Term, of the physical, technical and performance characteristics of the Equipment, of the anticipated obsolescence of and Lessee's intended use of the Equipment, and of all other relevant factors, Lessee represents and warrants huLessor and Pierce that Lessee has nocurrent fixed intention toexercise da option under this paragraph 3. 3.6 If Pierce deb*nninao that the "turn -in" conditions set forth herein have not been satisfied by Lessee, then the "turn -in" option of Lessee set forth in this paragraph 3 shall be void and Lessee shall be obligated to pay to PNC Equipment Finance, LLC in full the amounts set forth in paragraph 2 above. 4. RE -FINANCE OPTION. If and only if Lessee mends written notice to Lessor that Lessee elects to exercise Lessee's rightsunderthhapara0raph4adl»mmt3nmonths (but nomore than 6months) before the end of the Lease Tonn. then Lessor agrees to re -finance the Balloon Rent Payment with Lamaaa so long as all of the following conditions are satisfied in full: (a) Lessor in its sole discretion approves in writing the extension of credit to Lessee in connection with said re -financing; (b) the interest rate and term of the re -financing shall be mutually acceptable to Lessor and Leoaaa (pnovided, that iffor any reason Lessor and Lessee fail toagree on the interest rate and tonn for the re -financing, then Lessor shall have no obligation to re -finance the Balloon Rent Payment); (c) bauwee ohmU execute and deliver to Lessor such agreements as Lessor reasonably requires for such re -financing inc|uding, but not limited to, (i) on amendment ofthe Lease and its Schedule boreflect the terms ofthe re -financing approved byLessor; (ii) no Event of Default under the Lease shall have occurred and be continuing; (iii) no material odmynoe change ohoU have occurred in the Internal Revenue Code of 1886. as amended, and the na|sded regulations and rulings (collectively, the "Code"); (iv) all representations of Lessee in the Lease remain tma, aoouneha and complete; and (v) Leown, has received all mfthe following dPoumento, which shall be reasonably satisfactory, in form and substance, to Lessor (A) evidence ofrequired insurance coverage; (B)anopinion ofLessee's counsel; /C copies ofresolutions bvLessee's governing body authohzingthe re -financing of the Lease and incumbency oedUDcatan for the person(s) who will sign the required documents for the re -financing; (D) such documents and #adificotoo relating tothe tax-exempt inbnnaut payable in connection with the re -financing (including, without limitation, IRS Form 8038G or 8038GC) as Lessor may request; and (E) such other documents and information as are reasonably requested by Lessor. CitvofCrestview By: Pierce Manufacturing Inc., solely for the purposes of acknowledging the Balloon Rent Payment and its status as Third -Party beneficiary under certain terms of this Agreement. By- PNCBouipment Finance, LLC ("Lessor") Sandra Thomas Vice President END -OF -LEASE TERM OPTIONS RIDER (Including "Turn In" Option) Lease -Purchase Agreement Number 196972000 Dated May 23, 2016 Lessee: City of Crestview Balloon Rent Payment: $261,884.85 (Payable at the End of the Lease Term) Reference is made to the above Lease -Purchase Agreement together with its Schedule A-1 and all related agreements ("Lease") between PNC Equipment Finance, LLC (`Lessor") and the above Lessee ("Lessee"). Unless otherwise defined herein, capitalized terms defined in the Lease shall have the same meaning when used herein. Lessee and Lessor agree that this Rider is attached to and made a part of the Lease. 1. THREE OPTIONS AT THE END OF THE LEASE TERM. At the end of the Lease Term, Lessee shall have the following three options (provided, that If Lessee falls to furnish the advance written notice as required In paragraphs 3 or 4 below, then Lessee shall automatically be obligated to pay In full the amounts set forth in paragraph 2 below): (i) Lessee may pay the Balloon Rent Payment and all other amounts set forth in paragraph 2 below; or (ii) subject to the requirements of paragraph 3 below, Lessee may turn in the Equipment to Pierce Manufacturing Inc. ("Pierce') and Lessee shall agree to acquire a new fire truck supplied by Pierce or Pierce's designated dealer; or (iii) subject to the requirements of paragraph 4 below, Lessee may re -finance the Balloon Rent Payment, 2. BALLOON RENT PAYMENT. Unless Lessee has made an effective and timely election under paragraphs 3 or 4 below, at the end of the Lease Term, Lessee shall pay Lessor the Balloon Rent Payment together with all other unpaid Rent Payments and all other amounts then due and payable by Lessee under the Lease and thereafter the Lease shall terminate in accordance with Section 13 of the Lease. "Balloon Rent Payment' means the amount set forth above as the Balloon Rent Payment. Lessee expressly agrees that if it fails to fumish the advance written notice as required in paragraphs 3 or 4 below, then Lessee shall automatically be obligated to pay to Lessor in full the amounts set forth in this paragraph 2. 3. "TURN -IN" OPTION WITH RETURN & MAINTENANCE REQUIREMENTS. If and only if Lessee sends written notice to Lessor and Pierce that Lessee elects to exercise Lessee's rights under this paragraph 3 at least 18 months (but no more than 24 months) before the end of the Lease Tem1, then Lessee agrees for the benefit of both Lessor and Pierce that: (a) Lessee shall return the Equipment to Pierce in accordance with subparagraphs 3.1 and 3.2 below; (b) Lessee shall enter into a binding contract with Pierce (or Pierce's designated dealer) to acquire a Replacement Fire Truck in accordance with subparagraph 3.4 below; and (c) Lessee shall pay in full all amounts set forth in subparagraphs 3.1, 3.2 and 3,3 below. If and only if (i) Lessee complies in full with all of the requirements of this paragraph 3, then Lessee shall not be obligated to pay Lessor the Balloon Rent Payment at the end of the Lease Term. Lessee acknowledges that Pierce is the intended third party beneficiary of the terms and conditions of this paragraph 3, and Lessee agrees that Pierce, directly In its own name and for Its own benefit, may demand performance of and enforce any or all of Lessee's obligations as set forth in this paragraph 3 3.1 If Lessee has made an effective and timely election under the above terms of this paragraph 3, then at the end of the Lease Term, Lessee shall retum the Equipment to Pierce at a location selected by Pierce and Lessee agrees for the benefit of both Lessor and Pierce that the Equipment shall comply with the following retum and maintenance conditions on such date, all as determined by Pierce in its sole discretion: (1) during the Lease Term, Lessee shall have properly maintained the Equipment, including, without limitation, all oil supplies, lubrication, brake and hydraulic fluids, refrigeration fluids, filters and pollution control devices of the Equipment; (2) all paint shall be in normal condition without excessive scratches, dents and chips, all graphics must be professionally removed so that the exterior is In "trade-in' condition, and any paint or body repair exceeding $500.00 shall be completed at Lessee's expense; (3) all electrical components shall be fully operational and shall pass the Pierce QSD113 electrical test (or its reasonable equivalent as determined by Pierce); (4) all pumps must pass NFPA standard 1911 third -party certification (or its reasonable equivalent as deten-nined by Pierce); (5) engines har 3.3IfLessee intends boexercise its rights under this paragraph 3 and ifmtthe time ofLessee's return of the Equipment to Pierce at the end of the Lease Term the mileage recorded on the Equipment's odometer is greater than the Maximum Mileage noted below, then Lessee aho8 pay to Pierce an excess usage fee amount equal to the Excess Usage Fee stated below for each mile in excess ofthe K8a)dmum Mileage stated below: Maximum Mileage atthe End of the Lease Term: 15,000 miles per truck per year Excess Usage Fee: $4.69 per mile per truck 3.4Nolater than 1Omonths before the end of the Lease Term, Lessee shall have entered into binding written contract with Pierce or Pierce's designated dealer (which contract remains in effect at all relevant times) toacquire onew fire truck (a"Replacement Fire Tmck*)from Pierce orPierce'a designated dealer; provided, ) the terms and conditions ofsaid contract shall bareasonably satisfactory to Pierce or Pierce's designated dealer, and (b) the acquisition cost of the Replacement Fire Truck shall not beless than the Balloon Rent Payment; and the acquisition shall be financed byPNO Equipment Finance, LUC. 3.5 After careful consideration ofthe Lessor's Cost ofthe Equipment, of the length ofthnLaame Term, cfthe physical, technical and performancecharacteristics ofthe Equipment, cfthe anticipated obsolescence of and Lessee's intended use of the Equipment, and of all other relevant factors, Lessee represents and warrants to Lessor and Pierce that Lessee has nocurrent fixed intention to exercise its option under this paragraph 3. 3.6 If Pierce determines that the 'turn -in' conditions met forth herein have not been satisfied by Leasee, then the^turn'in^ option of Lessee set forth in this paragraph 3 shall be void and Lessee shall be obligated to pay to PNC Equipment Finance, LLC in full the amounts set forth in paragraph 2 above. 4. RE -FINANCE OPTION. If and only if Lessee sends written notice to Lessor that Lessee elects to exercise Lessee's rights under this paragraph 4 at least 3 months (but no more than 6 months) before the end of the Lease Tnmn, then Lessor agrees tn re -finance the Balloon Rent Payment with Louneo so long as all of the following conditions are ooUofied in full: (o) Lessor in its sole discretion approves in w6ting the extension of credit to Lessee in connection with said re -financing; (b) the interest rate and term ofthe re -financing ohoU be mutually acceptable to Lessor and Lessee (pnovided, that iffor any reason Lessor and Lessee fail to agree on the interest rate and term for the re -financing, then Lessor shall have no obligation to re -finance the Balloon Rent Payment); (c) L000ae shall execute and deliver to Lessor such agreements as Lessor 'reasonably requires for such re -financing including, but not limited to. Cj) an amendment of the Lease and its Schedule to reflect the terms of the re -financing approved by Lessor; (ii) no Event ofDefault under the Lease shall have occurred and be continuing; (iii) no material adverse change shall have occurred in the Internal Revenue Code of 1986. as amondod, and the related regulations and rulings (collectively, theTmde^); (iv) all representations ofLessee inthe Lease remain tma, accurate and complete; and (x) Lessor has received all of the following doouments, which shall be reasonably sodafoctory, in form and substance, to Lessor (A) evidence of required insurance coverage; (0) an opinion of Lessee's counsel; (C) copies of resolutions by Lessee's governing body authorizing the re -financing of the Lease and incumbency certificates for the person(s) who will sign the required documents for the re -financing; ([) such documents and certificates relating to the tax-exempt interest payable in connection with the re -financing (including, without limitation, IRS Form 803BG or8O38GC) as Lessor may request; and (E) such other documents and information as are reasonably requested by Lessor. ChvofCrestview (Lessee Name) Title: Pierce Manufacturing Inc., solely for the purposes of ar-knovAedging the Balloon Rent Payment and its status as Third -Party beneficiary under certain terms of this Agreement. By: PNCEouipment Finance, LLC ('Lessor") By: s^"C-~& Sandra Thomas Title: Vim PresidAnt May. 25, 2016 4:29PM P ank No. 6121 END -OF -LEASE TERM OPTIONS RIDER (including "Turn in" Option) Lease -Purchase Agreement Number 196972000 bated Mav 23, 2016 Lessee: city of Crestview Balloon Rent Payment $261,884.85 (Payable at the End of the Lease Term) Reference Is made to the above Lease -Purchase Agreement together with Its Schedule A-1 and all related agreements (41-ease) between PNC Equipment Firrance, LLC ("Lesson and the above Lessee (°Lessee"). Unless otherwise defined herein, capttalized terms defined in the Lease shall have the same meaning when used herein. Lessee and Lessor agree that this Rider is attached to and made a part of the Lease. 1. THREE OPTIONS AT THE END OF THE LEASE TERM. At the end of the Lease Term, Lessee shall have the following three options (provided, that if Lessee falls to furnish the advance written notice as required In paragraphs 3 or 4 below, then Lessee shall automatically be obligated to pay in full the amounts set forth In paragraph 2 below): (i) Lessee may pay the Balloon Rent Payment and all other amounts set forth In paragraph 2 below, or (i) subject to the requirements of paragraph 3 below, Lessee may turn In the Equipment to Pierce Manufacturing Inc. (Tierce") and Lessee shall agree to acquire a new fire truck supplied by Pierce or Pierce's designated dealer, or (iii) subject to the requirements of paragraph 4 below, Lessee may re -finance the Balloon Rent Payment. 2_ BALLOON RENT PAYMENT. Unless Lessee has made an effective and timely election under paragraphs 3 or 4 below, at the end of the Lease Term, Lessee shall pay Lessor the Balloon Rent Payment together with all other unpaid Rent Payments and all other amounts then due and payable by Lessee under the Lease and thereafter the Lease shall terminate in accordance with Section 13 of the Lease. "Balloon Rent Payment' means the amount set forth above as the Balloon Rent Payment. Lessee expressly agrees that if it fails to furnish the advance written notice as required in paragraphs 3 or 4 below, then Lessee shall automatically be obligated to pay to Lessor in full the amounts set forth in this paragraph 2. 3. "TURN -IN" OPTION WITH RETURN & MAINTENANCE REQUIREMENTS. If and only if Lessee sends written notice to Lessor and Pierce that Lessee elects to exercise Lessee's rights under this paragraph 3 at least 18 months (lout no more than 24 months) before the end of the Lease Term, then Lessee agrees for the benefit of both Lessor and Pierce that (a) Lessee shall return the Equipment to Pierce in accordance with subparagraphs 3.1 and 32 below (b) Lessee shall enter into a binding contract with Pierce (or PierG5.5 designated dealer) to acquire a Replacement Fire Truck in accordance With subparagraph 3.4 below, and (c) Lessee shall pay in full all amounts set forth in subparagraphs 3.1, 3.2 and 3.3 below. If and only if (i) Lessee complies in full with all of the requirements of this paragraph 3, then Lessee shall not be obligated to pay Lessor the Balloon Rent Payment at the end of the Lease Term. Lessee acknowledges that Pierce is the intended third party beneficiary of the terms and conditions of this paragraph 3, and Lessee agrees that Pierce, directly in its own name and for fts own benefit, may demand performance of and enforce any or all of Lessee's obligafions asset forth in this paragraph 3 • 3.1 If Lessee has made an effective and timely election under the above terms of this paragraph 3, then at the end of the Lease Term, Lessee shall return the Equipment to Pierce at a • location setected by Pierce and Lessee agrees for the benefit of both Lessor and Pierce that the Equipment shall comply with the following return and maintenance conditions on such date, all as determined by Pierce in its sole discretion: (1) during the Lease Term, Lessee shall have properly maintained the Equipment, including, without limitation, all 0l1 supplies, lubrication, brake and hydraulic fluids, refrigeration fluids, filters and pollution control devices of the Equipment; (Z) all paint shall be in normal condition without excessive scratches, dents and chips, all graphics must be professionally removed so that the exterior is in 'trade-in' condition, and any paint or body repair exceeding $500.00 shall be completed at Lessee's expense; (3) all electrical components shall be fully operational and shall pess the Pierce CISD113 electrical test (or its reasonable equivalent as determined by Pierce); (4) all pumps must pass NFPA standard 1911 third -party certification (or its reasonable equivalent as May, 25, 2016 4:29PM PI nk No, 6721 P. 4 determined by Pierce); (5) engines shaft perform according to original equipment manufacturer (OEM) specifications without eeressive fluid leaks or blow by (as specified in the owner's manual or its equivalent); (6) the transmissions shall shift properly at rated loads and speeds and the mechanical drivelines, differentials and final drives shall be in good condition without leaks or excessive vibration; (7) air conditioning units shall be fully functional and cooling to their rated capacity; (3) all environmental equipment shall be fully functional; (9) the engihe and exhaust systems shall conform to all federal and state emissions standards; (10) replacement parts installed on the Equipment shall have been supplied by approved OEM suppliers; (11) all brakes shall have at least 50% remaining useful life; (12) each tire shall have at least 50°4 remaining useful life, shall be of original size and rated capacity and shall not have any material damage, and any tire not satisfying said standards shall be replaced at Lessee's expense; (13) frame and structural members must be structurally sound and without breaks or cracks; (14) glass shall not be cracked or broken; (15) batteries must hold their rated charge for 72 hours; (16) any cost to repair damage In the chassis interior (including seat surfaces, headliners, door panels, dash and radio equipment mounting) exceeding $500.00 shall be paid by Lessee; (17) aerials must pass NFPA standard 1914 third -party certification (or its reasonable equivalent as determined by Pierce); (18) any cost exceeding $1,000.00 in total to repair physical damage to hose bed areas, cross lays, compartment interiors and tread plate surfaces shall be paid by Lessee; (19) all gauges and meters shall be fully operational: (20) Lessee shall pay all out-of-pocket costs incurred by Pierce or its agent to transport the Equipment to the location specified by Pierce and to Insure the Equipment during such transportation; and (21) Lessee shall have maintained the Equipment in compliance with Section 8 of the Lease. 3.2 At the time of Lessee's retum of the Equipment. to Pierce, (a) Lessee shall provide a historical record of all maintenance and repairs of the Equipment and periodic lubrication analyses done during the Lease Term in order to verify Lessee's compliance with the foregoing return and maintenance conditions, and (b) Lessee shall transfer good title to the Equipment free and clear of all Liens to PNC Equipment Finance, LLC (or its designee) and deliver a Certificate of Title and such other documents as PNC Equipment Finance, LLC reasonably requests to connection with such transfer of title. Within 20 days of Lessee's return of the Equipment, Pierce and/or its authorized agents will conduct a comprehensive road test, take lubrication testing samples from the engine, transmission and differential (and such lubricant tests must show no contaminants or excessive metal particles) and conduct other tests In order to determine whether the Equipment complies with the foregoing return and maintenance requirements and Lessee shall pay all costs and expenses necessary to make the Equipment comply with the foregoing return and maintenance requirements. All sums due under this paragraph 3 shall be paid to Pierce promptly upon Pierre's written demand and If said sums are not so paid by Lessee within 10 days from the demand date, Lessee shall pay Pierce on demand as a late charge 5% of such overdue amount, limited, however, to the maximum legal amount. 3.3 If Lessee intends to exercise its rights under this paragraph 3 and if at the time of Lessee's return of the Equipment to Pierce at the end of the Lease Term the mileage recorded on theEquipment's odometer is greater than the Maximum Mileage noted below, then Lessee shall pay to Pierce an excess usage fee amount equal to the Excess Usage Fee stated below for each mile in excess of the Maximum Mileage stated below: Maximum Mileage at the End of the Lease Term: 15,000 miles per truck per year Excess Usage Fee: $4.69 per mile per truck 3.4 No later than 18 months before the end of the Lease Term, Lessee she; have entered into a binding written contract with Pierce or Pierce's designated dealer (which contract remains in effect at all relevant times) to acquire a new fire truck (a 'Replacement Fire Truck') from Pierce or Pierce's designated dealer, provided, that (a) the terms and c-ondltions of said contract shall be reasonably satisfactory to Pierce or Pierce's designated dealer, and (Id) the acquisition cost of the Replacement Fire Truck shall not be less than the Balloon Rent Payment; and the acquisition shall be financed by PNC Equipment Finance, LLC, 3.5 After careful consideration of the Lessor's Cost of the Equipment, of the length of the Lease Term, of the physical, technical and perforrnance characteristics of the Equipment, of the anticipated obsolescence of and Lessee's intended use of the Equipment, and of all other relevant factors, Lesser MaY. 25. 2016 4:29PM P ank No. 6721 P. 5 represents and vitarrants to Lessor and Pierce that Lessee has no current frxed intention to exercise its option under this paragraph 3. 3.6 If Pierce determines that the qum-in" conditions set forth herein have not been satisfied by Lessee, then the 'turn -in" option of Lessee set forth in this paragraph 3 shall be void and Lessee shall be obligated to pay to PNC Equipment Finance, LLC in full the amounts set forth in paragraph 2 above. 4. RE -FINANCE OPTION. If and only if Lessee sends written notice to Lessor that Lessee elects to exercise Lessee's rights under this paragraph 4 at least 3 months (but no more than 6 months) befpre the end of the Lease Term, then Lessor agrees to re finance the Balloon Rent Payment with Lessee so long as all of the following conditions are satisfied in full: (a) Lessor in its sole discretion approves in writing the extension of credit to Lessee in connection with said re -financing; (b) the interest rate and term of the re -financing shall be mutually ac.oeptabie to Lessor and Lessee (provided, that if for any reason Lessor and Lessee fail to agree on the interest rate and term for the re -financing, then Lessor shall have no obligation to re -finance the Balloon Rent Payment); (c) Lessee shall execute and deliver to Lessor such agreements as Lessor reasonably requires for such re -financing including, but not limited to, (i) an amendment of the Lease and its Schedule to reflect the terms of the re -financing approved by Lessor, (ii) no Event of Default under the Lease shall have occurred and be continuing; (ill) no material adverse change shall have occurred in the Internal Revenue Code of 1986, as amended, and the related regulations and rulings (collectively, the "Code*); (iv) all representations of Lessee in the Lease remain true, accurate end complete; and (v) Lessor has received all of the following documents, which shall be reasonably satisfactory, in form and substance, to Lessor (A) evidence of required insurance coverage; (B) an opinion of Lessee's counsel: (C) copies of resolutions by Lessee's governing body authorizing the re -financing of the Lease and incumbency certificates for the person(s) who will sign the. required documents for the re -financing; (D) such documents and certificates relating to the taX-exempt interest payable in connection with the refinancing (including, without limitation, iRS Form EIC138G or 8038GC) as Lessor may request; and (E) such other documents and information as are reasonably requested by Lessor. City of Crestview PNC Equipment Finance, LLC ("Lessor) (Lessee Name) By: gar Tttle: Pima nufacturing Inc., soleiy for the pu-poses of acknowl the Balloon Rent Payment and Its status as Third -Pa , beneficiary un er certain terms of this Agnemant. "title! )-f „ Sandra Thomas Vice President BEN L. HOLLET BEN L. HOLLEY ATTORNEY AT Um P.O. Box 1236 301-67-PelleeP4-BeverretPrre-5 CREerview, FLA:mum'. 32536 Date: May 23, 2016 Lessee: CITY OF CRESTVIEW Lessor: PNC EQUIPMENT FINANCE, LLC PHONE (850) 682-2338 (850) 682-3559 FAX (850) 682-2779 Re: Lease -Purchase Agreement No. 196972000 dated May 23, 2016, by and between the above -named Lessee and the above -named Lessor Gentlemen: I have acted as counsel to Lessee with respect to the Lease Schedule, the Lease -Purchase Agreement and all other agreements described above or related thereto (collectively, the "Agreements") and various related matters, and in this capacity have reviewed a duplicate original or certified copy of the Agreements and such other documents as I have deemed necessary for the purposes of this opinion. Based upon the examination of such documents, it is my opinion that: Lessee is a political subdivision of the State of Florida (the "State") duly organized, existing and operating under the Constitution and laws of the State. 2. Lessee is authorized and has power under State law to enter into all of the Agreements, and to carry out its obligations thereunder and the transactions contemplated thereby. 3. The Agreements and all other documents related thereto have been duly authorized, approved, and executed by and on behalf of Lessee, and each of the Agreements is a valid and binding contract of Lessee enforceable in accordance with its terms, except to the extent limited by State and Federal law affecting creditor's remedies and by bankruptcy, reorganization or other laws of general application relating to or affecting the enforcement of creditors' rights. 4. The authorization, approval and execution of the Agreements and all other proceedings of Lessee relating to the transactions contemplated thereby have been performed in accordance with all applicable Local, State and Federal laws (including open meeting laws and public bidding and property acquisition laws. 5. To the best of my knowledge, there is no litigation or proceeding pending before any court, administrative agency or governmental body, that challenges: the organization or existence of Lessee; the authority of its officers; the proper authorization; approval and execution of PNC Equipment Finance, LLC May 23, 2016 Page -2- arty of the Agreements or any documents relating thereto; the appropriation of monies to make payments under the Agreements for the current fiscal year; or the ability of Lessee otherwise to perform its obligations under the Agreements and the transactions contemplated thereby. 6. Lessee is a political subdivision of the State as referred to in Section 103 of the Internal Revenue Code of 1986, as amended, and the related regulations and rulings thereunder. Lessor, its Assignee and any of their assigns may rely upon this opinion. Very truly yours, Ben L. Holley City Attorney City of Crestview, Florida Pierce Manufacturing Inc. AN OSHKOSH CORPORATION COMPANY ISO 900 I CERTIFIED 2600 AMERICAN DRIVE POST OFFICE BOX 2017 APPLETON, WISCONSIN 54912-2017 920-832-3000 • FAX 920-832-3208 www.piercemfg.com May 27, 2016 Deputy Chief Anthony Holland CITY OF CRESTVIEW 198 North Wilson Street Crestview, FL 32536 <Frotce-> Re: New Fire Apparatus — 30286-01 & 30286-02 Dear Deputy Chief Holland: Thank you for your recent purchase of TWO (2) SABER FR PUMPERS. We are pleased to formally accept this order and have enclosed a copy of the signed Agreement for your files. Also, please find enclosed an original copy of the Performance and Payment Bond in the amount of Nine Hundred Two Thousand, Eight Hundred Eighty Dollars ($902,880.00). Your truck order is now in queue for an engineering review. Once completed, an initial approval packet will be sent to your Pierce Representative for your review and signature approval. Please be advised any configuration changes after your "approval" must be in writing and could be subject to additional fees and schedule delays. Any questions regarding your order should be directed to your authorized Pierce Representative. The opportunity to place these PIERCE apparatus in your fire department is greatly appreciated. Pierce Manufacturing, Inc., and your authorized Pierce Representative, Ten-8 Fire Equipment, Inc., thank you for your business. Yours very truly, PIERCE N NUFACTURING, INC. Jerry .—Zt ey Sr. Manager, Order Management Dept. JC/kp Enclosures cc: Ten-8 Fire Equipment, Inc.„ Inc., w/enclosures PERFORM. LIKE NO OTHER: - This Purchase Agreement (together with all attachments referenced herein, the "Agreement"), made and entered into by and between Pierce Manufacturing Inc., a Wisconsin corporation ("Pierce"), and City of Crestview, a Florida Citx ("Customer") is effective as of the date specified in Section 3 hereof. 1. Definitions. a. "Product" means the fire apparatus and any associated equipment manufactured or furnished for the Customer by Pierce pursuant to the Specifications. b. "Specifications" means the general specifications, technical specifications, training, and testing requirements for the Product contained in the Pierce Proposal for the Product prepared in response to the Customer's request for proposal. c. "Pierce Proposal" means the proposal provided by Pierce attached as Exhibit C prepared in response to the Customer's request for proposal. d. "Delivery" means the date Pierce is prepared to make physical possession of the Product available to the Customer. e. "Acceptance" The Customer shall have fifteen (15) calendar days of Delivery to inspect the Product for substantial conformance with the material Specifications; unless Pierce receives a Notice of Defect within fifteen (15) calendar days of Delivery, the Product will be deemed to be in conformance with the Specifications and accepted by the Customer. 2. Purpose. This Agreement sets forth the terms and conditions of Pierce's sale of the Product to the Customer. 3. Term of Agreement. This Agreement will become effective on the date it is signed and approved by Pierce's authorized representative pursuant to Section 22 hereof ("Effective Date") and, unless earlier terminated pursuant to the terms of this Agreement, it will terminate upon the Customer's Acceptance and payment in full of the Purchase Price. 4. Purchase and Payment. The Customer agrees to purchase the Product specified on Exhibit A for the total purchase price of $902880.00 ("Purchase Price"). Prices are in U.S, funds. 5. Future Changes. Various state or federal regulatory agencies (e.g. NFPA, DOT, EPA) may require changes to the Specifications and/or the Product and in any such event any resulting cost increases incurred to comply therewith will be added to the Purchase Price to be paid by the Customer. In addition, any future drive train upgrades (engine, transmission, axles, etc.), or any other specification changes have not been calculated into our annual increases and will be provided at additional cost. To the extent practicable, Pierce will document and itemize any such price increases for the Customer. G. Agreement Changes. The Customer may request that Pierce incorporate a change to the Products or the Specifications for the Products by delivering a change order to Pierce; provided, however, that any such change order must be in writing and include a description of the proposed change sufficient to permit Pierce to evaluate the feasibility of such change ("Change Order"). Within [seven (7) business days] of receipt of a Change Order, Pierce will inform the Customer in writing of the feasibility of the Change Order, the earliest possible implementation date for the Change Order, of any increase or decrease in the Purchase Price resulting from such Change Order, and of any effect on production scheduling or Delivery resulting from such Change Order. Pierce shall not be liable to the Customer for any delay in performance or Delivery arising from any such Change Order. A Change Order is only effective when counter -signed by Pierce's authorized representative. 7. Cancellation/Termination. In the event this Agreement is cancelled or terminated by a party before completion, Pierce may charge a cancellation fee. The following charge schedule based on costs incurred may be applied: (a) 10% of the Purchase Price after order is accepted and entered by Pierce; (b) 20% of the Purchase Price after completion of approval drawings, and; (c) 30% of the Purchase Price upon any material requisition. The cancellation fee will increase accordingly as costs are incurred as the order progresses through engineering and into manufacturing. Pierce endeavors to mitigate any such costs through the sale of such Product to another purchaser; however Customer shall remain liable for the difference between the Purchase Price and, if applicable, the sale price obtained by Pierce upon sale of the Product to another purchaser, plus any costs incurred by Pierce to conduct any such sale. 8. Delivery, Inspection and Acceptance. (a) Delivery. Delivery of the Product is scheduled to be within 9 months of the Effective Date of this Agreement, F.O.B. Pierce's plant, Bradenton, Florida. Risk of loss shall pass to Customer upon Delivery. (b) Inspection and Acceptance. Upon Delivery, Customer shall have fifteen (15) days within which to inspect the Product for substantial conformance to the material Specifications, and in the event of substantial non-conformance to the material QSD 1398 I Revised: 09/10/2010 Specifications to furnish Pierce with written notice sufficient to permit Pierce to evaluate such non-conformance ("Notice of Defect"). Any Product not in substantial conformance to material Specifications shall be remedied by Pierce within thirty (30) days from the Notice of Defect. In the event Pierce does not receive a Notice of Defect within fifteen (15) days of Delivery, Product will be deemed to be in conformance with Specifications and Accepted by Customer. 9, Notice. Any required or permitted notices hereunder must be given in writing at the address of each party set forth below, or to such other address as either party may substitute by written notice to the other in the manner contemplated herein, by one of the following methods: hand delivery; registered, express, or certified mail, return receipt requested, postage prepaid; or nationally -recognized private express courier: Pierce Manufacturing, Inc. Director of Order Management 2600 American Drive Appleton WI 54912 Fax (920) 832-3080 Customer City of Crestview 198 N Wilson Street PO Box 1209 Crestview, FL 32536 850-682-1560 10. Standard Warranty. Any applicable Pierce warranties are attached hereto as Exhibit B and made a part hereof. Any additional warranties must be expressly approved in writing by Pierce's authorized representative. a. Disclaimer. OTHER THAN AS EXPRESSLY SET FORTH 1N THIS AGREEMENT, NEITHER PIERCE, ITS PARENT COMPANY, AFFILIATES, SUBSIDIARIES, LICENSORS OR SUPPLIERS, THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, SHAREHOLDERS, AGENTS OR REPRESENTATIVES, MAKE ANY EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE PRODUCTS PROVIDED HEREUNDER OR OTHERWISE REGARDING THIS AGREEMENT, WHETHER ORAL OR WW1 EN, EXPRESS, IMPLIED OR STATUTORY. WITHOUT LIMITING THE FOREGOING, ANY IMPLIED WARRANTY OR CONDITION OF MERCHANTABILITY, THE IMPLIED WARRANTY AGAINST INFRINGEMENT, AND THE IMPLIED WARRANTY OR CONDITION OF FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY EXCLUDED AND DISCLAIMED. STATEMENTS MADE BY SALES REPRESENTATIVES OR IN PROMOTIONAL MATERIALS DO NOT CONSTITUTE WARRANTIES. b. Exclusions of Incidental and Consequential Damages. In no event shall Pierce be liable for consequential, incidental or punitive damages incurred by Customer or any third party in connection with any matter arising out of or relating to this Agreement, or the breach thereof, regardless of whether such damages arise out of breach of warranty, tort, contract, strict liability, statutory liability, indemnity, whether resulting from non -delivery or from Pierce's own negligence, or otherwise. 11. Insurance. Pierce maintains the following li Commercial General Liability Insura Products/Completed Operations Each Occurrence: Umbrella/Excess Liability Insurance Aggregate: Each Occurrence: s of insurance with a carrier(s) rated A- or better by A.M. Best: nce: Aggregate: $1,000,000 $ 1,000,000 $25,000,000 $25,000,000 The Customer may request: (x) Pierce to provide the Customer with a copy of a current Certificate of Insurance with the coverages listed above; (y) to be included as an additional insured for Commercial General Liability (subject to the terms and conditions of the applicable Pierce insurance policy); and (z) all policies to provide a 30 day notice of cancellation to the named insured 12. Indemnity. To the extent permitted by Florida law, the Customer shall indemnify, defend and hold harmless Pierce, its officers, employees, dealers, agents or subcontractors, from any and all claims, costs, judgments, liability, loss, damage, attorneys' fees or expenses of any kind or nature whatsoever (including, but without limitation, personal injury and death) to all property and persons caused by, resulting from, arising out of or occurring in connection with the Customer's purchase, installation or use of goods sold or supplied by Pierce which are not caused by the sole negligence of Pierce. 13. Force Majeure. Pierce shall not be responsible nor deemed to be in default on account of delays in performance due to causes which are beyond Pierce's control which make Pierce's performance impracticable, including but not limited to civil wars, insurrections, strikes, riots, fires, storms, floods, other acts of nature, explosions, earthquakes, accidents, any act of government, delays in transportation, inability to obtain necessary labor supplies or manufacturing facilities, allocation QSD 1398 2 Revised: 09/10/2010 regulations or orders affecting materials, equipment, facilities or completed products, failure to obtain any required license or certificates, acts of' God or the public enemy or terrorism, failure of transportation, epidemics, quarantine restrictions, failure of vendors (due to causes similar to those within the scope of this clause) to perform their contracts or labor troubles causing cessation. slowdown, or interruption of work. 14. Default. The occurrence of one or more of the following shall constitute a default under this Agreement: (a) the Customer fails to pay when due any amounts under this Agreement or to perform any of its obligations under this Agreement: (b) Pierce fails to perform any of its obligations under this Agreement; (c) either party becomes insolvent or become subject to a bankruptcy or insolvency proceedings; (d) any representation made by either party to induce the other to enter into this Agreement is false in any material respect; (e) the Customer dissolves, merges, consolidates or transfers a substantial portion of its property to another entity; or (f) the Customer is in default or has breached any other contract or agreement with Pierce. 15. Manufacturer's Statement of Origin. It is agreed that the manufacturer's statement of origin ("MSO") for the Product covered by this Agreement shall remain in the possession of Pierce until the entire Purchase Price has been paid. If more than one Product is covered by this Agreement, theft the NISO for each individual Product shall remain in the possession of Pierce until the Purchase Price for that Product has been paid in full. In case of any default in payment, Pierce may take full possession of the Product, and any payments that have been made shall be applied as payment for the use of the Product up to the date of taking possession. 16. Independent Contractors. The relationship of the parties established under this Agreement is that of independent contractors and neither party is a partner, employee, agent, or joint venturer of or with the other. 17. Assignment. Neither party may assign its rights and obligations under this Agreement unless it has obtained the prior written approval of the other party. 18. Governing Law; Jurisdiction. Without regard to any conflict of laws provisions, this Agreement is to be governed by and under the laws of the state of Florida. 19. Facsimile Signatures. The delivery of signatures to this Agreement by facsimile transmission shall be binding as original signatures. 20. Entire Agreement. This Agreement shall be the exclusive agreement between the parties for the Product. Additional or different terms proposed by the Customer shall not be applicable, unless accepted in writing by Pierces authorized representative. No change in, modification of, or revision of this Agreement shall be valid unless in writing and signed by Pierce's authorized representative. 21. Conflict. In the event of a conflict between the Customer Specifications and the Pierce Proposal. the Pierce Proposal shall control. In the event there is a conflict between the Pierce Proposal and this Agreement, the Pierce Proposal shall control. 22. Signatures. This Agreement is not effective unless and until it is approved. signed and dated by Pierce Manufacturing, Inc.'s authorized representative. Accepted and agreed to: PIERCE ANUFACTURING, INC. / STONIER: ofCre iew Name: Title: tit !"L10\ Date: 5 1-4e 5 i e( 1� Name: (� J Title Date: QSD 1398 3 Revised: 09/10/2010 EXHIBIT A PURCHASE DETAEL FORM Pierce Manufacturing, Inc. Director of Order Management 2600 American Drive Appleton WI 54912 Fax (920) 832-3080 Date; March 7, 2016 Customer Name: City of Crestview , Quantity Chassis Type Body Type Price per Unit 2 Pierce SaberFR Rescue Pumper $451,440,00 $ $ $ Contract subject to lease financing approval with PNC Equipment Finance and the City of Crestvie%. FL. Florida Sheriff Contract # 15-11-0116 Specification # 18 Expires on 3/31/2016. The new Florida Sheriff Contract goes into effect on 4/1/2016 with a 3%Write increase. Ten-8 Fire Equipment shall hold this bid price for the City of Crestview, - Warranty Period: Standard Warranties provided in Bid Documents. Training Requirements: 3 days of training by en authorized & certified Pierce MFG delivery train Other Matters: Performance Bond shall be provided. Preventive Maintenance Level LE Quarterly Service to be provide during the Lease Term as follows: A) Three. Six, Mine, and Twelve-month inspection and service mfornned at the Ten-8 Service Center, B) Inspection and service transfer case at each interval. Cl Maintenance includes service and oil filter changes on all applicable systems at the 6 and 12 month intervals. D) Includes labor, filters, lubricants. and light bulbs Fit Annual service pump test. Payment Tends: with lease approval full payment will be received from PNC Equipment Finance and performance bond will_ 13e, issued by Pierce_MFG• NOTE: if deferred payment arrangements aro rugrrired, the Customer must make such 6nanoial ammgcments through a financial institution acceptable to Pierce.] All taxes, excises and levies that Pieroe may be required to pay or polled by reason of any present or Muria law or by any governmental authority based upon the sale, perohaso, delivery, storage, processing, use, consumption, or transportation of the Product sold by Pierce to the Customer shall be for the accotmt of tho Customer and shall be added to the Purchase Price. All delivery prices or prima with freight allowance are basal upon prevailing freight rates and, in the event of any increase or decrease In awl rates, the prioes on all unshipped Product will be increased or decreased accordingly. Delinquent payments shall be subject to a carrying charge of 1.5 pereamil per month or such leaser amount permitted by law. Pierce will nd be required to acoepl payment other than as vet WI in this Agreement. However, to avoid a late charge assaament in the evert of a dispute caused by a substantial nonconformance with material Specifuefions (other than freight), the Customer may withhold up to fivo percent (WOE) of the Purchase Prise until such time that Pierce substantially remedies the nonconformance with material Speoilieuatio ns, but no longer than sixty (60) days alter Delivery. if the disputed amount is the freight charge, the Customer may withhold only the amount of the freight ohargo until lho dispute is settled, but no longer than sixty (60) days alter Delivery. Pierce shall have and retain a purohnso money aeotrily interest in all goods and products now or hereafter sold to the Cuatemer by Pierce or any of its affiliated companies to scour° payment of the Purchase Price for all such goods and products. In the event of nonpayment by the Customer of any debt, obligation or liability now or hereafter incurred or owing by the Customer to Pierce, Pierce shall have and may exercise all rights and remedies of a s tired party under Athol° 9 of the Uniform Commercial Code (UCC) as adopted by the shmte of Wisconsin THIS PURCHASE DETAIL FORM IS EXPRESSLY SUBJECT TO THE PURCHASE AGREEMENT TERMS AND CONDITIONS DATED AS OF March 31, 2016 BETWEEN PIERCE MANUFACTURING INC, AND City of Crestview, QSD 1398 4 Revised: 09/10/2010 EL WHICH TERMS AND CONDITIONS ARE HEREBY INCORPORATED IN, AND MADE PART OF, THIS PURCHASE DETAIL FORM AS THOUGH EACH PROVISION WERE SEPARATELY SET FORTH HEREIN, EXCEPT TO THE EXTENT OTHERWISE STATED OR SUPPLEMENTED BY PIERCE MANUFACTURING INC, HEREIN. QSD 1398 Revised: 09/ 0/2010 EXHIBIT B WARRANTY PROVIDED IN OUR BID DOCUMENTS QSD 1398 5 Revised: 09/10/2010 Liberty mutuillm Interchange Corporate Center 450 Plymouth Road, Suite 400 Plymouth Meeting, PA. 19462-1644 PERFORMANCE AND PAYMENT BOND Bond No. 190035458 KNOW ALL MEN BY THESE PRESENTS, THAT, Pierce Manufacturing Inc. (hereinafter called Principal), as Principal and Liberty Mutual Insurance Comoanv a corporation organized and existingunder the laws c»the State cf Massachusetts with its principalofficwhntheCdyoC Boston (hereinafter called Surety) mnSurety are held and firmly bound unto City of Crestview (hereinafter called the O and hnall personswho furnish labor crmaterial directly 1uthe Principal for use inthe prosecution of the work hereinafter named, in the just and full sum of Nine Hundred Two Thousand Eight Hundred Eighh/Dollars and OO/1OO DpUaro($8O2.88O.00 ) to the payment of which sum well and holy to he moda, the said Principal and Surety bind thamomlvmo, and their respective heirs, administrators, executors, successors and assigns, jointly and severally, firmly by these presents. WHEREAS, the Principal has entered into acertain written contract with the Owner, dated the 31st day of March 2016 for Two (2) Pierce Saber FR Pumpers which contract is hereby referred to and made a part hereof as fully and to the same extent as if copied at length NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that Dthe said Principal shall fully Indemnify the Owner from and against any failure onhis/her part faithfully to perform the obligations imposed upon him/her under the terms of said contract free and clear nfall liens arising out of claims for labor and material entering into the work, and if the said Phno|po| abaU pay all persons who uhoU have furnished labor or material directly to the Principal for use in the prosecution of the ohunouuid wmrh, each of which said persons shall have m direct right of action on this instrument in his/her own name and for him/her own beneOt, aubject, howaver, to the Owners priority, then this obligation to be void; otherwise to remain in full force and effect. PROVIDED, HOWEVER. that no antion, suit or proceeding ohoU be had ormaintained against the Surety on this instrument un|aao the same be brought urinstituted and pmuoou served upon the Surety within two years after completion of the work mentioned in said oontract, whether such work be completed by the Phncipo|. Surety or Owner; but if there is any maintenance or warranty period provided in the contract for which said Surety is liable, an action for such maintenance or warranty may be brought within two years from the expiration of said maintenance orwarranty period, but not afterwards. BY ACCEPTANCE of this bond, it is hereby acknowledged that the attached Dual Obligee Rider becomes apart of this bond. IN WITNESS WHday of Apr,��E�P�en�dPm�p��d8u��h�eo��dand sealed ��|n�m�� Instrument 4� Pierce Manuf._ turing Inc. 8 By: Principal o,MOme,wgt Name and Title Liberty Mutual Insurance Company Sarah E.OeYoung LMIC' l60 Pagel of2 interchange Corporate Center 450 Plymouth Road, Suite 400 Plymouth Meeting, PA. 19462-1644 DUAL OBLIGEE RIDER To be attached to and form apart of bond no. 1Q0035458 executed byUbertv Mutual Insurance CnmoanvaaSurety this 4th day of April . 2016 .|nthe amount of Nine Hundred Two Thousand Eight Hundred Eiqhb/Dollars and OO/1OO OoUana (%902.880.00 \onbehalf ofPierce ManufacturinqInc. .aaPrincipal infavor ofthe City ofCrestview as Obligee. Whereas, upon the request ofthe Principal ondObligee, attached bond iohereby amended toadd PNC Equipment Finance, LLC, B-4'13230-05'7. 155 East Broad Street, Columbus, [)H 43215 as additional obligee. The surety shall not be liable under this bond to the Obligees,������.���o�Obligees mva�herofthen). shall make payments to the Principal, or to the Surety in case it arranges for the completion of the contract upon default of the Principal, strictly in accordance with the benno of said contract as to payments, and shall perform all the other obligations to be performed under said contract atthe time and |nthe matter therein set forth. Innoevent shall the Surety teliable in the aggregate to both Obligees for more than the penalty of its Performance Bond (or Performance and Payment Bond, asapplicable herein),nor shall it be liable except for msingle payment for each single breach ordefault. Atthe Surety's election, any payment due to either Obligee may be made by its check issued jointly to both. All other terms and conditions of this bond are unchangedexcept moherein above modified. LMDC-5180 Page 2oy2 Bev 1-08 This Power of Attomey limits the acts of those named herein, and they have no authority to bind the Company except in the manner and to the extent herein stated. Not valid for mortgage, note, loan, letter of credit, bank deposit, currency rate, interest rate or residual value guarantees. To confirm the validity of this Power of Attorney call 610.832.8240 between 9:00 am and 4;30 pm EST on any business day. American Fire and Casualty Company Liberty Mutual Insurance Company The Ohio Casualty Insurance Company West American Insurance Company POWER OF ATTORNEY KNOWN ALL PERSONS BY THESE PRESENTS: That American Fire 8 Casualty Company and The Ohio Casualty Insurance Company are corporations duly organized under the laws of the State of New Hampshire, that Liberty Mutual Insurance Company is a corporation duly organized under the laws of the State of Massachusetts, and West American Insurance Company Is a corporation duty oganIzed under the laws of the State of Indiana (herein collectively called the 'Companies'), pursuant to and by authority herein set forth, does hereby name, constitute and appointarah E. DeYounq of the dry of Milwaukee , stale of W r its true and lawful attorney -in -fact, with full power and authority hereby conferred to sign, execute and acknowledge the following surety bond: Principal Name: Pierce Manufacturing Inc. Obligee Name: City of Crestview Surety Bond Number:190035458 Bond Amount: See Bond Form IN WITNESS WHEREOF, this Power of Attorney has been subscribed by an authorized officer or official of the Companies and the corporate seals of the Companies have been affixed thereto this VP day of November, 2013. By: STATE OF PENNSYLVANIA COUNTY OF MONTGOMERY American Fire and Casualty Company The Ohio Casualty Insurance Company Liberty Mutual Insurance Company Wesyt4merican Insurance Company David Nf Carey, Assistant Secretary On this 118th day of November, 2013, before me personally appeared David M. Carey, who acknowledged himself to be the Assistant Secretary of American Fire and Casualty Company, Liberty Mutual Insurance Company, The Ohio Casualty Company, and West American Insurance Company, and that he, as such, being authorized so to do, execute the foregoing instrument for the purposes therein contained by signing on behalf of the corporations by himself as a duly authorized officer. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my notarial seal at Plymouth Meeting, Pennsylvania, on the day and year first above written. COMMONWEALTH OF PENNSYLVANIA Notarial Seal Teresa Pastella, Notary Public Plymouth Tvp., Montgomery County My Commission Expires March 28, 2017 Member Pennsylvania Association of Notaries This Power of Attoo ey-f de and executed pursuant to and by authority of the following By-laws and Authorizations of American Fire and Casualty Company, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company which resolutions are now in full force and effect reading as follows: ARTICLE IV — OFFICERS — Section 12. Power of Attomey. Any officer or other official of the Corporation authorized for that purpose in writing by the Chairman or the President, and subject to such limitation as the Chairman or the President may prescribe, shall appoint such attomeys-in-fact, as may be necessary to act in behalf of the Corporation to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attorneys -in -fact, subject to the limitations set forth In their respective powers of attomey, shall have full power to bind the Corporation by their signature and execution of any such instruments and to attach thereto the seal of the Corporation. When so executed, such Instruments shall be as binding as if signed by the President and attested to by the Secretary. Any power or authority granted to any representative or attomey- in-fact under the provisions of this article may be revoked at any time by the Board, the Chairman, the President or by the officer or officers granting such power or authority. ARTICLE X II — Execution of Contracts — SECTION 5. Surety Bonds and Undertakings. Any officer of the Company authorized for that purpose in writing by the chairman or the president, and subject to such limitations es the chairman or the president may prescribe, shall appoint such attorneys -in -fact, as may be necessary to act in behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Such attomeys•in-fact subject to the limitations set forth in their respective powers of attorney, shall have full power to bind the Company by their signature and execution of any such Instruments and to attach thereto the seal of the Company. When so executed such instruments shall be as binding as if signed by the president end attested by the secretary. Certificate of Designation —The President of the Company, acting pursuant to the Bylaws of the Company, authorizes David M. Carey, Assistant Secretary to appoint such attorneys - in -fact as may be necessary to act on behalf of the Company to make, execute, seal, acknowledge and deliver as surety any and all undertakings, bonds, recognizances and other surety obligations. Authorization — By unanimous consent of the Company's Board of Direclors, the Company consents that facsimile or mechanically reproduced signature of any assistant secretary of the Company, wherever appearing upon a certified copy of any power of attomey issued by 0te Company in connection with surety bonds, shall be valid and binding upon the Company with the same force and effect as though manually affixed. I, Gregory W. Davenport, the undersigned, Assistant Secretary, of American Fire and Casualty Company, The Ohio Casualty Insurance Company, Liberty Mutual Insurance Company, and West American Insurance Company do hereby certify that the original power of attomey of which the foregoing Is a full, true and correct copy of the Power of Attorney executed by said Companies, is in full force and effect and has not been revoked. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed the seals of said Companies this 4th day of April 2016 . By. //4Z.04 l�Qt1Tr stelEa, Notary Public By: Gregory W. Davenport, Assistant Secretary PERFORM. LIKE NO OTHER:" This Purchase Agreement (together with all attachments referenced herein, the "Agreement"), made and entered into by and between Pierce Manufacturing Inc., a Wisconsin corporation ("Pierce"), and City of Crestview, a Florida City ("Customer") is effective as of the date specified in Section 3 hereof. 1. Definitions. a. "Product" means the fire apparatus and any associated equipment manufactured or furnished for the Customer by Pierce pursuant to the Specifications. b. "Specifications" means the general specifications, technical specifications, training, and testing requirements for the Product contained in the Pierce Proposal for the Product prepared in response to the Customer's request for proposal. c. "Pierce Proposal" means the proposal provided by Pierce attached as Exhibit C prepared in response to the Customer's request for proposal. d. "Delivery" means the date Pierce is prepared to make physical possession of the Product available to the Customer. e. "Acceptance" The Customer shall have fifteen (15) calendar days of Delivery to inspect the Product for substantial conformance with the material Specifications; unless Pierce receives a Notice of Defect within fifteen (15) calendar days of Delivery, the Product will be deemed to be in conformance with the Specifications and accepted by the Customer. 2. Purpose. This Agreement sets forth the terms and conditions of Pierce's sale of the Product to the Customer. 3. Term of Agreement. This Agreement will become effective on the date it is signed and approved by Pierce's authorized representative pursuant to Section 22 hereof ("Effective Date") and, unless earlier terminated pursuant to the terms of this Agreement, it will terminate upon the Customer's Acceptance and payment in full of the Purchase Price. 4. Purchase and Payment. The Customer agrees to purchase the Product specified on Exhibit A for the total purchase price of $902880.00 ("Purchase Price"). Prices are in U.S. funds. 5. Future Changes. Various state or federal regulatory agencies (e.g. NFPA, DOT, EPA) may require changes to the Specifications and/or the Product and in any such event any resulting cost increases incurred to comply therewith will be added to the Purchase Price to be paid by the Customer. In addition, any future drive train upgrades (engine, transmission, axles, etc.), or any other specification changes have not been calculated into our annual increases and will be provided at additional cost. To the extent practicable, Pierce will document and itemize any such price increases for the Customer. 6. Agreement Changes. The Customer may request that Pierce incorporate a change to the Products or the Specifications for the Products by delivering a change order to Pierce; provided, however, that any such change order must be in writing and include a description of the proposed change sufficient to permit Pierce to evaluate the feasibility of such change ("Change Order"). Within [seven (7) business days] of receipt of a Change Order, Pierce will inform the Customer in writing of the feasibility of the Change Order, the earliest possible implementation date for the Change Order, of any increase or decrease in the Purchase Price resulting from such Change Order, and of any effect on production scheduling or Delivery resulting from such Change Order. Pierce shall not be liable to the Customer for any delay in performance or Delivery arising from any such Change Order. A Change Order is only effective when counter -signed by Pierce's authorized representative. 7. Cancellation/Termination. In the event this Agreement is cancelled or terminated by a party before completion, Pierce may charge a cancellation fee. The following charge schedule based on costs incurred may be applied: (a) 10% of the Purchase Price after order is accepted and entered by Pierce; (b) 20% of the Purchase Price after completion of approval drawings, and; (c) 30% of the Purchase Price upon any material requisition. The cancellation fee will increase accordingly as costs are incurred as the order progresses through engineering and into manufacturing. Pierce endeavors to mitigate any such costs through the sale of such Product to another purchaser; however Customer shall remain liable for the difference between the Purchase Price and, if applicable, the sale price obtained by Pierce upon sale of the Product to another purchaser, plus any costs incurred by Pierce to conduct any such sale. 8. Delivery. Inspection and Acceptance. (a) Delivery. Delivery of the Product is scheduled to be within 9 months of the Effective Date of this Agreement, F.O.B. Pierce's plant, Bradenton, Florida. Risk of loss shall pass to Customer upon Delivery. (b) Inspection and Acceptance. Upon Delivery, Customer shall have fifteen (15) days within which to inspect the Product for substantial conformance to the material Specifications, and in the event of substantial non-conformance to the material QSD 1398 r Revised: 09/ 10/2010 Specifications to furnish Pierce with written notice sufficient to permit Pierce to evaluate such non-conformance ("Notice of Defect"). Any Product not in substantial conformance to material Specifications shall be remedied by Pierce within thirty (30) days from the Notice of Defect. In the event Pierce does not receive a Notice of Defect within fifteen (15) days of Delivery, Product will be deemed to be in conformance with Specifications and Accepted by Customer. 9. Notice. Any required or permitted notices hereunder must be given in writing at the address of each party set forth below, or to such other address as either party may substitute by written notice to the other in the manner contemplated herein, by one of the following methods: hand delivery; registered, express, or certified mail, return receipt requested, postage prepaid; or nationally -recognized private express courier: Pierce Manufacturing, Inc. Director of Order Management 2600 American Drive Appleton WI 54912 Fax (920) 832-3080 Customer City of Crestview 198 N Wilson Street PO Box 1209 Crestview. FL 32536 850-682-1560 10. Standard Warranty. Any applicable Pierce warranties are attached hereto as Exhibit B and made a part hereof. Any additional warranties must be expressly approved in writing by Pierce's authorized representative. a. Disclaimer. OTHER THAN AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PIERCE, ITS PARENT COMPANY, AFFILIATES, SUBSIDIARIES, LICENSORS OR SUPPLIERS, THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, SHAREHOLDERS, AGENTS OR REPRESENTATIVES, MAKE ANY EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE PRODUCTS PROVIDED HEREUNDER OR OTHERWISE REGARDING THIS AGREEMENT, WHETHER ORAL OR WRI1`IEN, EXPRESS, IMPLIED OR STATUTORY. WITHOUT LIMITING THE FOREGOING, ANY IMPLIED WARRANTY OR CONDITION OF MERCHANTABILITY, THE IMPLIED WARRANTY AGAINST INFRINGEMENT, AND THE IMPLIED WARRANTY OR CONDITION OF FITNESS FOR A PARTICULAR PURPOSE ARE EXPRESSLY EXCLUDED AND DISCLAIMED. STATEMENTS MADE BY SALES REPRESENTATIVES OR IN PROMOTIONAL MATERIALS DO NOT CONSTITUTE WARRANTIES. b. Exclusions of Incidental and Consequential Damages. In no event shall Pierce be liable for consequential, incidental or punitive damages incurred by Customer or any third party in connection with any matter arising out of or relating to this Agreement, or the breach thereof, regardless of whether such damages arise out of breach of warranty, tort, contract, strict liability, statutory liability, indemnity, whether resulting from non -delivery or from Pierce's own negligence, or otherwise. H. Insurance. Pierce maintains the following limits of insurance with a carrier(s) rated A- or better by A.M. Best: Commercial General Liability Insurance: Products/Completed Operations Aggregate: $1,000,000 Each Occurrence: $1,000,000 Umbrella/Excess Liability Insurance: Aggregate: $25,000,000 Each Occurrence: $25,000,000 The Customer may request: (x) Pierce to provide the Customer with a copy of a current Certificate of Insurance with the coverages listed above; (y) to be included as an additional insured for Commercial General Liability (subject to the terms and conditions of the applicable Pierce insurance policy); and (z) all policies to provide a 30 day notice of cancellation to the named insured 12. Indemnity. To the extent permitted by Florida law, the Customer shall indemnify, defend and hold harmless Pierce, its officers, employees, dealers, agents or subcontractors, from any and all claims, costs, judgments, liability, loss, damage, attorneys' fees or expenses of any kind or nature whatsoever (including, but without limitation, personal injury and death) to all property and persons caused by, resulting from, arising out of or occurring in connection with the Customer's purchase, installation or use of goods sold or supplied by Pierce which are not caused by the sole negligence of Pierce. 13. Force Majeure. Pierce shall not be responsible nor deemed to be in default on account of delays in performance due to causes which are beyond Pierce's control which make Pierce's performance impracticable, including but not limited to civil wars, insurrections, strikes, riots, fires, storms, floods, other acts of nature, explosions, earthquakes, accidents, any act of government, delays in transportation, inability to obtain necessary labor supplies or manufacturing facilities, allocation QSD 1398 2 Revised: 09/10/2010 regulations or orders affecting materials, equipment, facilities or completed products, failure to obtain any required license or certificates, acts of God or the public enemy or terrorism, failure of transportation, epidemics, quarantine restrictions, failure of vendors (due to causes similar to those within the scope of this clause) to perform their contracts or labor troubles causing cessation, slowdown, or interruption of work. 14. Default. The occurrence of one or more of the following shall constitute a default under this Agreement: (a) the Customer fails to pay when due any amounts under this Agreement or to perform any of its obligations under this Agreement; (b) Pierce fails to perform any of its obligations under this Agreement; (c) either party becomes insolvent or become subject to a bankruptcy or insolvency proceedings; (d) any representation made by either parry to induce the other to enter into this Agreement is false in any material respect; (e) the Customer dissolves, merges, consolidates or transfers a substantial portion of its property to another entity; or (f) the Customer is in default or has breached any other contract or agreement with Pierce. 15. Manufacturer's Statement of Origin. It is agreed that the manufacturer's statement of origin ("MSO") for the Product covered by this Agreement shall remain in the possession of Pierce until the entire Purchase Price has been paid. If more than one Product is covered by this Agreement, then the MSO for each individual Product shall remain in the possession of Pierce until the Purchase Price for that Product has been paid in full. In case of any default in payment, Pierce may take full possession of the Product, and any payments that have been made shall be applied as payment for the use of the Product up to the date of taking possession. 16. Independent Contractors. The relationship of the parties established under this Agreement is that of independent contractors and neither party is a partner, employee, agent, or joint venturer of or with the other. 17. Assignment. Neither party may assign its rights and obligations under this Agreement unless it has obtained the prior written approval of the other party. 18. Governing Law; Jurisdiction. Without regard to any conflict of laws provisions, this Agreement is to be governed by and under the laws of the state of Florida. 19. Facsimile Signatures. The delivery of signatures to this Agreement by facsimile transmission shall be binding as original signatures. 20. Entire Agreement. This Agreement shall be the exclusive agreement between the parties for the Product. Additional or different terms proposed by the Customer shall not be applicable, unless accepted in writing by Pierce's authorized representative. No change in, modification of, or revision of this Agreement shall be valid unless in writing and signed by Pierce's authorized representative. 21. Conflict. In the event of a conflict between the Customer Specifications and the Pierce Proposal, the Pierce Proposal shall control. In the event there is a conflict between the Pierce Proposal and this Agreement, the Pierce Proposal shall control. 22. Signatures. This Agreement is not effective unless and until it is approved, signed and dated by Pierce Manufacturing, Inc.'s authorized representative. Accepted and agreed to: PIERCE ANUFACTURING, INC. Name: ti Title: AA. 1141 Date: 5-23— /L .a rnr5 f �-�z tlit CUSTOMER: City of Crestview Name: Title: Date: QSD 1398 3 Revised: 09/10/2010 EXHIBIT A PURCHASE DETAIL FORM Pierce Manufacturing, Inc. Director of Order Management 2600 American Drive Appleton WI 54912 Fax (920) 832-3080 Date: March 7, 2016 Customer Name: Citv of Crestview Quantity Chassis Type Body Type Price per Unit 2 Pierce Saber FR Rescue Pumper S451,440,00 $ S Contract subject to lease financing approval with PNC Equipment Finance and the City of Crestview„FL. Florida Sheriff Contract # 15-11-0116 Specification # 18 Expires on 3/31/2016. The new Florida Sheriff Contract_goes into effect on 4/1/2016 with a 3% price increase, Ten-8 Fire Equipment shall hold this bid price for the City of Crestview, Warranty Period: Standard Warranties provided in Bid Documents. Training Requirements: 3 days of training by an authorized & certified Pierce MFG delivery train Other Matters: Performance Bond shall be provided. Preventive Maintenance Level IH Quarterly Service to be provide during the Lease Term as follows: A) Three. Six, Nine, and Twelve-month inspection and service performed at the Ten-8 Service Center. B) Inspection and service transfer case at each interval. Cl Maintenance includes service and oil filter changes on all applicable systems at the 6 and 12 month intervals, D) Includes labor, filters, lubricants, and light bulbs. E) Annual service pump test. Payment Terms: with lease approval frill payment will be received from PNC Equipment Finance and performance bond will_ Be issued by Pierce MFG. [NOTE: if deferred payment arrangements arc required, the Customer must make such financial arrangements through a financial institution acceptable to Pierce.] All taxes, excises and levies that Pierce may be required to pay or collect by reason of any present or future law or by any governmental authority based upon the sale, purchase, delivery, storage, processing, use, consumption, or transportation of the Product sold by Pierce to the Customer shall be for the account of the Customer and shall be added to the Purchase Price. All delivery prices or prices with freight allowance are based upon prevailing freight rates and, in the event of any increase or decrease in such rates, the prices on all unshipped Product will be increased or decreased accordingly. Delinquent payments shall be subject to a carrying charge of 1.5 percent per month or such lesser amount permitted by law. Pierce will not be required to accept payment other than as set forth in tills Agreement. However, to avoid a late chntge fISSeSsltnettl in the event of a dispute caused by a substantial nonconformance with material Specifications (other than freight), the Customer may withhold up to five percent (5%) of the Purchase Price until such time that Pierce substantially remedies the nonconformance with material Speciications, but no longer dam sixty (60) days after Delivery, If the disputed amount is the freight charge, the Customer may withhold only the amount of the freight ()binge until tho dispute is settled, but no longer than sixty (60) days after Delivery. Pierce shall have and retain a purchase money security interest in all goods and products now or hereafter sold to die Customer by Pierce or any of its affiliated companies to secure payment of the Purchase Price for all such goods and products. In Ole event of nonpayment by the Customer of any debt, obligation or liability now or hereafter incurred or owing by the Customer to Pierce, Pierce shall have and may exercise all rights and remedies of a secured party under Article 9 of the Uniform Commercial Code (UCC) as adopted by the state of Wisconsin. THIS PURCHASE DETAIL FORM IS EXPRESSLY SUBJECT TO THE PURCHASE AGREEMENT TERMS AND CONDITIONS DATED AS OF March 31, 2016 BETWEEN PIERCE ivIf1NUFACTURING INC. AND City of Crestview, QSD 1398 4 Revised: 09/10/2010 FL WHICH TERMS AND CONDITIONS ARE HEREBY INCORPORATED IN, AND MADE PART OF, THIS PURCHASE DETAIL FORM AS THOUGH EACH PROVISION WERE SEPARATELY SET FORTH HEREIN, EXCEPT TO THE EX LENT OTHERWISE STATED OR SUPPLEMENTED BY PIERCE )MANUFACTURING INC. HEREIN. QSD 1398 5 Revised: 09/10/2010 EXHIBIT B WARRANTY PROVIDED IN OUR BID DOCUMENTS QSD 1398 5 Revised: 09/10/2010 Form 8038-G (Rev. September 2011) Department of the Treasury Internal Revenue Service Information Return for Tax -Exempt Governmental Obligations ► Under Internal Revenue Code section 149(e) ►See separate instructions. Caution: If the issue price is under $100,000, use Form 8038-GC. OMB No. 1545-0720 Part I Reporting Authority If Amended Retum, check here P. ❑ 1 Issuer's name City of Crestview 2 Issuer's employer identification number (EIN) 59 6000295 3a Name of person (other than issuer) with whom the IRS may communicate about this return (see instructions) 3b Telephone number of other person shown on 3a 4 Number and street (or P.O. box If mail Is not delivered to street address) 198 N Wilson Street Room/suite 5 Report number (For IRS Use Only) f 3 6 City, town, or post office, state, and ZIP code Crestview FL 32536 7 Date of Issue 5,23/2016 a Name of issue Lease w 196972000 9 CUSIP number 10a Name and title of officer or other employee of the Issuer whom the IRS may call for more Information (see Instructions) 10b Telephone number of officer or other employee shown on 10a 850-682 6121 Part II Type of Issue (enter the issue price). See the instructions and attach schedule. 11 Education 12 Health 13 Transportation 14 Public 15 Environment 16 Housing 17 Utilities 18 Other. 19 If If 20 If and hospital safety (including sewage bonds) Describe P. 11 12 13 14 902,880 26 15 16 17 18 obligations are TANs or RANs, check only box 19a obligations are BANs, check only box 19b obligations are in the form of a lease or installment sale, check box ► ■ 1 ► ■ ► CI Part III Description of Obligations. Complete for the entire issue for which this form is being filed. (a) Final maturity date (b) Issue price (c) Stated redemption price at maturity (d) Weighted average maturity (e) Yield 21 6/23/2023 $ 902,880 26 $ 902,880 26 7 years 2 810 % Part IV Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest 23 Issue price of entire issue (enter amount from line 21, column (b)) 24 Proceeds used for bond issuance costs (including underwriters' discount) . 24 25 Proceeds used for credit enhancement 26 Proceeds allocated to reasonably required reserve or replacement fund 27 Proceeds used to currently refund prior issues 28 Proceeds used to advance refund prior issues 29 Total (add lines 24 through 28) 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here) 25 26 27 28 22 23 902,880 26 29 30 902,880 26 Part V Description of Refunded Bonds. Complete this part only for refunding bonds. 31 Enter the remaining weighted average maturity of the bonds to be currently refunded . • P. yew 32 Enter the remaining weighted average maturity of the bonds to be advance refunded . P. years 33 Enter the last date on which the refunded bonds will be called (MM/DD/YYYY) P. 34 Enter the date(s) the refunded bonds were issued ► (MM/DD/YYYI) For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 63773S Form 8038-G (Rev. 9-2011) Form 8038-G (Rev.9-2011) Page 2 Part VI Miscellaneous 35 Enter the amount of the state volume cap allocated to the issue under section 141(b)(5) . . . 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC) (see instructions) b Enter the final maturity date of the GIC ► c Enter the name of the GIC provider ► 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units 38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ► ❑ and enter the following information: b Enter the date of the master pool obligation P. c Enter the EIN of the issuer of the master pool obligation ► d Enter the name of the issuer of the master pool obligation ► 39 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box ► El 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ► ❑ 41a If the issuer has identified a hedge, check here ► ❑ and enter the following information: b Name of hedge provider c Type of hedge ► d Term of hedge P. 42 If the issuer has superintegrated the hedge, check box ► ❑ 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations (see instructions), check box P. ❑ 44 If the issuer has established written procedures to monitor the requirements of section 148, check box ► ❑ 45a If some portion of the proceeds was used to reimburse expenditures, check here ► ❑ and enter the amount of reimbursement ► b Enter the date the official intent was adopted ► 35 36a 37 Signature and Consent Paid Preparer Use Only Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return information, as necessary to process this retum, to the person that I have }gthorized above. 5�aa, 6 ' Signature fissuer's authori ed representat' e D e '.7.7.4‘444iy aygZfek... Type or print name and title Print/Type preparer's name Preparer's signature Date Check ❑ If self-employed PTIN Firm's name P. Firm's address ► Firm's EIN ► Phone no Form 8038-G (Rev. 9-2011)